100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
ECS2602 Assesment 2 Macroeconomics R65,49
Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of South Africa
  4.  
  5. ECS2602 Macroeconomics (ECS2602)

Exam (elaborations)

ECS2602 Assesment 2 Macroeconomics
 2 purchases

ECS2602 Assesment 2 Macroeconomics The term “full employment” refers to a situation in the economy … Select one: A. in which there is only frictional and structural unemployment. B. where everybody who wants to work is employed. C. in which there is only cyclical unemployment and fric...

[Show more]

Preview 4 out of 113  pages

Document information

  • April 28, 2024
  • 113
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • ecs2602 assesment 2 macroeconomics

Written for

All documents for this subject (74)

Seller

avatar-seller
morrisacademiamorrisa

Reviews received

Content preview

lOMoARcPSD|40623771




ECS2602 Assesment 2 - Assessment 2 review


Macroeconomics (University of South Africa)

, lOMoARcPSD|40623771




The term “full employment” refers to a situation in the economy …

Select one:

A.
in which there is only frictional and structural unemployment.


B.
where everybody who wants to work is employed.


C.
in which there is only cyclical unemployment and frictional unemployment.


D.
where there is no unemployment in the economy.
Feedback
Your answer is incorrect. Given the different types of unemployment, frictional
unemployment always exists due to normal labour market turnover where workers
change jobs and are considered voluntary unemployment. Structural unemployment is
more long-term unemployment, and it is slow to fix as it is linked to the changing
structure of the economy that requires either migration or re-training of the workers.
Therefore, the term full employment refers to a situation in the economy in which there
is no cyclical (or demand-deficient) unemployment.
The correct answer is:
in which there is only frictional and structural unemployment.
Question 2
Correct
Mark 1.00 out of 1.00




Flag question
Question text

Which one of the following statements is correct regarding the IS-LM model?

Select one:

A.
A change in government spending only influences the goods market and has no impact
on the financial market.


B.

, lOMoARcPSD|40623771




The initial impact of a change in taxation is on the financial market since the interest rate
will be affected.


C.
If the consumer confidence in the economy worsens, the impact will be first on the
financial market and then on the goods market.


D.
The initial impact of a change in the interest rate is on the financial market, after which it
influences the goods market.
Feedback
Your answer is correct. The first thing you must identify is on which market the initial
impact is felt. Your starting point is the events in this initial market, which will
eventually spill over into the other market. The initial impact of a change in taxation is
on the goods market and then on the financial market. The first impact of a change in
government spending is on the goods market, where it influences several variables,
which eventually affect the financial market. If the consumer confidence in the economy
worsens, the impact will be first on the goods market and then on the financial market.
The correct answer is:
The initial impact of a change in the interest rate is on the financial market, after which it
influences the goods market.
Question 3
Incorrect
Mark 0.00 out of 1.00




Flag question
Question text

This question is based on the following comparison between the impact of
an expansionary fiscal policy with a contractionary monetary policy in the
IS-LM model:


Expansionary Contractionary
fiscal policy monetary policy
The demand for goods Higher Lower
The level of output and income Higher Lower
The interest rate Unchanged Higher

, lOMoARcPSD|40623771




Investment spending Higher Lower
Lower
Budget deficit Higher Unchanged


The reason for the higher quantity of money demand and the quantity of
money for an expansionary fiscal policy is that the while for a
contractionary monetary policy it is lower since the .
Select one:

A.
level of output and income is higher; level of output and income is lower


B.
level of output and income is lower; level of output and income is higher


C.
interest rate is unchanged; interest rate is higher


D.
investment spending is higher; investment spending is lower
Feedback
Your answer is incorrect. A positive relationship exists between the level of output and
income and the quantity demand for money and the quantity for money. In the case of
an expansionary fiscal policy, the level of output and income is higher (Y↑ → Md↑ → M↑).
In the case of contractionary monetary policy, the level of output and income is lower (Y↓
→ Md↓ → M↓).
The correct answer is:
level of output and income is higher; level of output and income is lower
Question 4
Incorrect
Mark 0.00 out of 1.00




Flag question
Question text

In this module, we follow the to derive the LM curve that means that the
.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller morrisacademiamorrisa. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R65,49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

65040 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Start selling

Recently viewed by you

Summary ·

(0)

De wapens van sociale beinvloeding

Summary ·

(0)

Samenvatting Sociologische perspectieven

Other ·

(0)

PN3 HESI Exam 3 (LATEST) Study Guide

Exam (elaborations) ·

(0)

CBP EXAM 3 LATEST VERSION GRADED A+

Summary ·

(2)

summary international economic law

Exam (elaborations) ·

(0)

Sociology Exam 1(solved 100%)2022/2023

Summary ·

(1)

samenvatting voeding voor zwangere vrouw

Class notes ·

(0)

PHYS-1401 2nd Midterm Notes Review
R65,49  2x  sold
  • (0)
Add to cart
Added