This document serves as a guide to help reflect on my review of Assessment 4 for ECS1601. This is purely for reflection purposes and shows my decisions on the answers to the assessment as well as the marks I obtained for each answer.
Started on Saturday, 13 May 2023, 4:50 PM
State Finished
Completed on Saturday, 13 May 2023, 5:29 PM
Time taken 39 mins 18 secs
Marks 19.00/20.00
Grade 95.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following best describes the consumer price index (CPI) and producer price index (PPI)?
a. PPI calculates the prices of goods only, while CPI excludes intermediate goods.
b. An increase in PPI will lead to a decrease in CPI, while a change CPI will not affect PPI.
c. PPI changes are linked to the cost of living, while CPI is linked to the cost of production.
d. PPI calculates the prices of goods and services, while CPI measures services only.
Refer to section 10.2 of the prescribed textbook.
Question 2
Correct
Mark 1.00 out of 1.00
Inflation can be caused by a/an ...... Within the AD-AS model, this will be illustrated by a ......
a. rise in consumption spending; leftward shift of the AD curve
b. fall in crude oil price; rightward shift of the AS curve
c. decrease in exports earnings; leftward shift of the AD curve
d. high wage demands by trade unions; leftward shift of the AS curve
See section section 10.4 of the prescribed textbook.
, Question 3
Correct
Mark 1.00 out of 1.00
MENU
One of the objectives of the South African Reserve Bank is inflation targeting, and the inflation target for South Africa is between 3 and 6 per
Dashboard
cent. / Courses
There happens to be/ an
UNISA
excess/ demand
2023 / for
Semester 1 / services,
goods and ECS1601-23-S1
which has/ led
Online
to anassessments / general
increase in the Assessment
price4level, that is, inflation.
If the inflation rate were above the target, it would be appropriate for the South African Reserve Bank to …
a. increase the repo rate.
b. lower the interest rate level.
c. buy government bonds.
d. increase the quantity of money.
Refer to section 10.5 of the prescribed textbook.
Question 4
Correct
Mark 1.00 out of 1.00
Which one of the following is the cause of demand-pull inflation?
a. a decrease in interest rates
b. a decrease in government spending
c. the leftward shift of the AD curve
d. an increase in the cost of labour
Refer to section 10.4 of the prescribed textbook.
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