Crowdly

Add to Chrome

Universities
mymodules.dtls.unisa.ac.za
ECS1601-25-Y_ASS3

ECS1601-25-Y_ASS3

Looking for ECS1601-25-Y_ASS3 test answers and solutions? Browse our comprehensive collection of verified answers for ECS1601-25-Y_ASS3 at mymodules.dtls.unisa.ac.za.

Get instant access to accurate answers and detailed explanations for your course questions. Our community-driven platform helps students succeed!

A depreciation of the rand may have inflationary consequences in South Africa because it…

Discourages savings.

Increases the costs of imported goods.

Discourages exports.

Increases the costs of exports.

View this question

The appropriate policy to combat cost-push inflation would be to increase ______, which will be illustrated by __________.

wages; leftward shift of the aggregate supply curve

productivity; rightward shift of the aggregate supply curve

government spending; rightward shift of the aggregate demand curve

interest rates; leftward shift of the aggregate demand curve

View this question

Which of the following best describes a difference between demand-pull inflation and cost-push inflation?

Demand-pull inflation occurs when there is a shortage in aggregate demand, while cost-push inflation is the upward pressure on the general price level due to rising cost of production.

Cost-push inflation can be caused by increases in the cost of wages and intermediate goods, while demand-pull can be caused by increase in exports.

Demand-pull inflation is triggered by increases in the cost of production, while cost-push inflation occurs when the aggregate demand for goods and services increases while aggregate supply remains unchanged.

There is no difference between demand-pull inflation and cost-push inflation as they are triggered by the same sources.

View this question

The following question is based on the diagram below:

A shift of the AS curve from AS to AS1 is the result of…

a decrease in labour productivity.

a decrease in consumption spending.

an increase in price level.

an increase in productivity.

View this question

Suppose that Y = C + I + G + X – Z. Which of the following can be illustrated by a rightward shift of the AD curve?

(a) Increased technological innovation and political stability.

(b) A boom in major economies such as China, which are South Africa’s major trading partners.

(c) Depreciation of the local currency against the world’s major currencies due to speculation.

Only (a) and (b) are correct

All (a), (b) and (c) are correct

Only (c) is correct

Only (b) and (c) are correct

Only (a) is correct

View this question

Within the AD-AS model, what will be the impact of expansionary demand management policy on the economy?

aggregate demand will decrease and the price level increase.

aggregate supply will decrease and the price level increase.

total production and employment will increase, while inflation decrease.

real output and the price level will increase, while unemployment decrease.

View this question

The question is based on the following diagrams, which show the aggregate demand and supply curves.

The effect of the decision by the South African Reserve Bank (SARB) to decrease the repo rate is shown by …

figures 1 and 2

figure 3

figure 1

figures 2 and 4

View this question

When the SARB decreases the interest rates, investment spending will increase, which will lead to an increase in aggregate spending and aggregate demand in the economy. This chain of events is called …

monetary policy transmission mechanism.

transmission mechanism of contractionary fiscal policy.

transmission mechanism of contractionary monetary policy.

fiscal policy transmission mechanism.

View this question

In the AD-AS model, an increase in government expenditure …

will increase the balance of payments deficit and decrease unemployment.

will decrease the balance of payment deficit and decrease unemployment.

will increase the balance of payments deficit and increase unemployment.

will decrease the balance of payments deficit and increase unemployment.

View this question

Which one of the following implies an improvement in the economic wellbeing of the people of a country?

The real GDP increased mainly due to an increase in defence expenditure.

The increase in the real GDP of 10% is distributed evenly amongst the population of a country, which grew by 1%.

The nominal GDP increased by 10%, while the price level increased by 12% and there was no increase in the population.

The nominal GDP increased by 6%, while the price level increased by 6% and the population increased by 1%.

View this question

Previous
1
5
6
7
8
Next

Want instant access to all verified answers on mymodules.dtls.unisa.ac.za?

Get Unlimited Answers To Exam Questions - Install Crowdly Extension Now!

Add to Chrome

Telegram Instagram TikTok Question Bank

Terms of Use Contact Us

Add to Chrome

Add to Chrome