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ECON1102-Macroeconomics 1 - T1/2025
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Recall the PAE model you studied in class, where
The unlabelled diagram below presents the initial equilibrium in Country X.
Assume that the government of Country X has increased the marginal tax rate (t).
Which diagram below is the best representation of this change?1.
2.
3.
4.
5.
Recall the model of the labour market you learned in class.
In all diagrams below, point "a" represents the initial equilibrium in the labour market.
Among the diagrams below, which one could represent the labour market after the government passed a law to increase in the retirement age?
1.
2.
3.
4.
5.
Recall the PAE model you studied in class, where
The unlabelled diagram below presents the initial equilibrium in Country X.
Assume that due to increasing uncertainty about the future state of the economy, households in Country X increased their exogenous (i.e., autonomous) savings.
Which diagram below is the best representation of this change?1.
2.
3.
4.
5.
Recall the PAE model you studied in class, where
The unlabelled diagram below presents the initial equilibrium in Country X.
Assume that the government of Country X has increased taxes (T) and its expenditures (G), such that the change in T equals the change in G, keeping the government budget at balance. Which diagram below is the best representation of this change?
1.
2.
3.
4.
5.
The below figure is taken from the Australian Bureau of Statistics (ABS) website and presents the percentage changes in CPI for Australia.
In which of the following selected years was the Australian inflation rate most likely within the RBA’s target range?
In
the aftermath of the Asian currency crisis of 1997, many Asian emerging
economies changed their exchange rate regimes from fixed to floating systems.
Assume that the figures below present exchange rate of five currencies (of countries A, B, C, D, and E) against the US dollar.
Analyse the figures below and identify which country or countries likely transitioned from a fixed exchange rate regime to a floating exchange rate regime around the time of the 1997 Asian currency crisis.
Recall the model of the labour market you learned in class.
In all diagrams below, point "a" represents the initial equilibrium in the labour market.
Among the diagrams below, which one could represent the labour market after an increase in the marginal productivity of labour ?
1.
2.
3.
4.
5.
Recall the model of the labour market you learned in class.
In all diagrams below, point "a" represents the initial equilibrium in the labour market.
Among the diagrams below, which one could represent the labour market after the government passed a law to increase the intake of skilled immigrants ?
1.
2.
3.
4.
5.
Use the information from the previous question:
C=1,800+0.6Y
Ip=900
X=100
M=0.3Y,
and assume that the economy is at its short-run equilibrium. You are also told that the actual rate of unemployment in the economy is 18%, the frictional rate of unemployment is 2%, the structural rate of unemployment is 6% and the cyclical rate of unemployment is 10%. Participation rate is 70%. The size of the population is 13,500,000. Using Okun’s Law with "beta" equal to 2 what is the level of potential output in the economy to the nearest whole number?Consider the following economy:
C=1,800+0.6Y
Ip=900
X=100
M=0.3Y
What is the short-run equilibrium output for this economy?