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ECS1601 ASSESSMENT 6 SEMESTER 2 2024
- Course
- Economics IB
- Institution
- University Of South Africa (Unisa)
ECS1601 ASSESSMENT 6 SEMESTER 2 2024
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ECS1601-24-Y Online assessments Assessment 6QUIZ
Started on Saturday, 12 October 2024, 9:26 PM
State Finished
Completed on Saturday, 12 October 2024, 10:33 PM
Time taken 1 hour 7 mins
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Use the information in the table to answer question:
The inflation rate …
a. increased by 4,73% from 2018 to 2019.
b. decreased by 0,18% from 2019 to 2020.
c. decreased by 4,42% from 2018 to 2019.
d. increased by 4,73% from 2019 to 2020.
Refer to section 10.2 of the prescribed textbook.
,Question 2
Correct
Mark 1.00 out of 1.00
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 cent. There happens to be an excess demand for goods and services, which has led to an increase in
the general price level, that is, inflation.
If the inflation rate were above the target, it would be appropriate for the South African Reserve Bank to …
a. buy government bonds.
b. lower the interest rate level.
c. increase the quantity of money.
d. increase the repo rate.
Refer to section 10.5 of the prescribed textbook.
Question 3
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. fall in crude oil price; rightward shift of the AS curve
b. rise in consumption spending; leftward shift of the AD 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 4
Correct
Mark 1.00 out of 1.00
If inflation accelerates due to the increase in the price of oil (an import), the best policy to combat such inflation in a country
with a high unemployment rate, would be to...
a. implement contractionary monetary policy, illustrated by the rightward shift of the AD curve.
b. respond with demand management policy that will increase aggregate demand, which will be illustrated by a
rightward shift of the AD curve.
c. apply the supply-side policy that will increase aggregate supply, which will be illustrated by a rightward shift of
the AS curve.
d. apply incomes policy, illustrated by a leftward shift of the AS curve.
See sections 9.1 and 10.5 of the prescribed textbook.
Question 5
Correct
Mark 1.00 out of 1.00
Which of the following can cause demand-pull inflation?
[1] A decrease in interest rates which leads to an increase in consumption and investment spending.
[2] An increase in government spending on social wealth and education.
[3] A rise in the cost of import intermediate goods due to a depreciation of the domestic currency.
a. [1]
b. [1] and [2]
c. [3]
d. [2]
e. [1], [2] and [3]
Refer to section 10.4 of the prescribed textbook.
, Question 6
Correct
Mark 1.00 out of 1.00
The following question is based on the table below:
Month Consumer price index
2012 2013
January 50.3 60.2
February 52.4 61.1
April 53.2 63.1
May 55.5 64.2
June 56.1 65.3
Assume the consumer price index increases to 72.3 in April 2014. What will be the annual inflation rate for April 2014?
a. 9.2
b. 14.58
c. 12.72
d. 18.6
Refer to section 10.2 of the prescribed textbook.
Question 7
Correct
Mark 1.00 out of 1.00
If the inflation rate increases and nominal interest rate is unchanged, then _________.
a. the real interest rate will decrease
b. the real interest rate will be unchanged
c. the real interest rate will increase
d. the nominal interest rate will decrease
Refer to section 10.3 of the prescribed textbook.
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