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ECC1100 - Principles of macroeconomics - S1 2025

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Why does an anticipated change in income lead to no change in consumption for a consumption smoother?

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The marginal propensity to consume:

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If Marios is a consumption smoother and has just won a prize of $12,000, we can expect Marios to exhibit:

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Very briefly explain the ways that you have used AI in the production of this assessment.

A.    Which AI tools you have used in this test?

B.    How you have used the AI tools?

Suggested format:

I

used 

[insert AI system(s) 

and

link]

 to 

[specific use of

generative artificial intelligence]

 

[number

of iterations/drafts]

. The tool was used to provide  

[describe

content used in task]

. The output from this tool was modified

by 

[explain use].

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Alicia is currently studying full-time but keeping an eye on the job market for positions to take up when she graduates. If she finds something suitable, she will start right away, otherwise she will actively job search once she graduates. Philip lost his job in a construction company in Jan 2025 and has been looking for another since then. 

a.    

In the above

example, explain what is the effect on participation rate and unemployment rate

and the equilibrium unemployment rate (natural rate of unemployment).

b.    

The government

decides to spend $100million on infrastructure projects to create more jobs.

Would this help reduce unemployment in the above example? Why/why not?

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Suppose inflation is currently running at 15% and, as a result, sales catalogues have to be reprinted every month. This is an example of:

0%
0%
0%
0%
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When money is used as a means to hold wealth, it serves as a: 
0%
0%
100%
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Using the definition of unemployment, which of the following individuals would be unemployed

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The natural rate of unemployment is the rate of unemployment when the economy is in:

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Martha did not like her job as a receptionist, so she quit the job and is looking for one that better suits her artistic talents. Ting Pei would like to work, but employers are not willing to hire him because he does not have computer skills. Martha is ____ unemployed and Ting Pei is _____ unemployed.

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