may result in … in production, income and employment.

Autonomous consumption C1 = R 2000

Autonomous investment I = R 6000

Marginal propensity to consume c = ¾

The equilibrium level of income is

a. The function of money as a medium of exchange applies in a monetary economy only.

b. Anything that serves as medium of exchange can also function as a unit of account.

c. Money is not the most liquid form to keep wealth.

(a) According to the strict definition, unemployed refers to persons over 15 years old who are not paid or self-employed, who were available for paid employment or self-employment seven days before the interview and actively sought paid employment and self-employment four weeks preceding the interview.

(b) The expanded or broad definition excludes persons who have the mere desire to find work, which implies it excludes discouraged workers.

(c) There is no difference between the strict and expanded definition of unemployment.