Exam (elaborations)
Economic growth and business cycles, Unemployment and the Phillips curve, Inflation
- Course
- Economics IB
- Institution
- University Of South Africa (Unisa)
ECS1601 - Macroeconomics I
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Started on Thursday, 10 October 2024, 7:47 PMState Finished
Completed on Thursday, 10 October 2024, 8:45 PM
Time taken 57 mins 28 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1 Which one of the following is the cause of demand-pull inflation?
Correct
Mark 1.00 out of a. a decrease in government spending
1.00
b. an increase in the cost of labour
Flag
question c. a decrease in interest rates
d. the leftward shift of the AD curve
Refer to section 10.4 of the prescribed textbook.
Question 2 Which one of the following will not be appropriate in an attempt to combat demand-pull inflation?
Correct
Mark 1.00 out of a. Measures to decrease the productivity of labour
1.00
b. A decrease in government spending
Flag
question c. An increase in interest rates
d. An increase in taxes
Refer to section 10.4 of the prescribed textbook.
Question 3 Paul lends R10 000 to his friend Steven for one year. They agree that Steven would pay the R10 000 back with 5% interest at the end of
Correct the year. If the inflation rate is 6%, which of the following would be true for the real value of the amount that Steven pays back at the
Mark 1.00 out of end of the year?
1.00
Flag a. It would be more than R10 000 but less than R10 500
question
b. It would be more than R10 500.
c. It would be less than R10 000.
d. It would be exactly R10 500.
Refer to section 10.3 of the prescribed textbook.
Question 4 In response to the COVID-19 pandemic, countries injected trillions of dollars into their economies to provide relief to households and
Correct firms. This response is an example of ... policy, which can result in ... inflation, ceteris paribus.
Mark 1.00 out of
1.00
a. expansionary; demand-pull
Flag
question b. expansionary; cost-push
c. contractionary; cost-push
d. contractionary; demand-pull
Refer to section 10.4 of the prescribed textbook.
Question 5 One of the objectives of the South African Reserve Bank is inflation targeting, and the inflation target for South Africa is between 3 and
Correct 6 per cent. There happens to be an excess demand for goods and services, which has led to an increase in the general price level, that
Mark 1.00 out of is, inflation.
1.00
If the inflation rate were above the target, it would be appropriate for the South African Reserve Bank to …
Flag
question
a. buy government bonds.
b. lower the interest rate level.
c. increase the quantity of money.
d. increase the repo rate.
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