Exam (elaborations)
ECS2602_Assessment 1_Answers
- Course
- Intermediate Macroeconomics
- Institution
- University Of South Africa (Unisa)
ECS2602_Assessment 1_Answers
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Assessment 1: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=153UNISA 2024 ECS2602-24-S1 Welcome to the module ECS2602-24-S1 Assessment 1
QUIZ
Started on Thursday, 7 March 2024, 9:29 AM
State Finished
Completed on Thursday, 28 March 2024, 2:12 PM
Time taken 21 days 4 hours
Marks 28.00/30.00
Grade 93.33 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which one of the following is an example of a stabilisation policy?
Select one:
A. Labour market policies aimed to increase the productivity of labour.
B. Expansionary monetary policy during a recession.
C. Tariffs on imports.
D. In�ation targeting.
Your answer is correct. In this module, our main concern is how �scal and
monetary policy can be used to stabilise the economy. Fiscal policy and
monetary policy are the stabilisation policies.
The correct answer is:
Expansionary monetary policy during a recession.
1 of 29 2024/03/28, 15
,Assessment 1: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=153
Question 2
Incorrect
Mark 0.00 out of 1.00
This question is based on the following information:
Government spending = 160
Taxes = 100
Exports = 160
Imports = 100
Capital in�ows = 130
Capital out�ows = 200
Which one of the following statements is correct?
Select one:
A. A trade de�cit of 60 occurs.
B. The �nancial account de�cit is equal to 70.
C. A budget surplus of 60 occurs.
D. Trade balance position occurs.
Your answer is incorrect. Capital in�ows and out�ows are re�ected in the
�nancial account. Therefore, a �nancial account de�cit occurs since the capital
out�ows are higher than the capital in�ows. A trade surplus is where exports
exceed imports, while a trade de�cit is where imports exceed exports. A budget
de�cit is where government spending exceeds taxes (government income).
The correct answer is:
The �nancial account de�cit is equal to 70.
2 of 29 2024/03/28, 15
,Assessment 1: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=153
Question 3
Correct
Mark 1.00 out of 1.00
Which one of the following statements is correct?
An autonomous (or exogenous) variable in our model means that the variable
_____
Select one:
A. decreases if income in the economy decreases.
B. is determined by the level of income or output in the economy.
C. increases if income in the economy increases.
D. is determined by factors such as business con�dence, regulations
and political in�uences.
Your answer is correct. An autonomous (or exogenous) variable in our model
means that the variable is not determined by the level of income or output in the
economy.
Remember that an exogenous (autonomous) variable is independent of the
endogenous variable – the variable we are trying to explain – and, while it
in�uences the endogenous variable, it is not in�uenced by it. In the model that we
are developing, the main endogenous variable is the level of output and income
(Y). Since an exogenous variable is independent of the model, it will not be
in�uenced by a change in output and income level. For example, investment
spending is a fully exogenous (autonomous) variable in our goods market model
(learning unit 2), which is determined by exogenous factors such as business
con�dence; and it is not determined by the level of output and income in the
economy. However, investment does have an endogenous component in the IS-
LM model (learning unit 4).
The correct answer is:
is determined by factors such as business con�dence, regulations and political
in�uences.
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