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ECS1601-25-Y
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If
Consumption is…
Suppose that the South African economy is depicted by the following information:
Y = 10 000
S = -250 + 0.65Y
I = 500
G = 1 100
1 500 = 200 + mY
Which of the following is correct?
i. The multiplier in the economy is 2.083.
ii. The equilibrium level of income is 1 650.00.
iii. The equilibrium level of income is 2 115.30.
iv. The multiplier in the economy is 1.282.The question below is based on the following equations, which refer to a model of a closed economy without a government sector.
A = C + I
C = 600 + 0,75Y I = 200 Which of the following statements is/are correct?a) The value of the multiplier is 0,25.
b) The equilibrium income level is 3 200.
c) If investment increases, the equilibrium level of income will increase.
The following question is based on the following equation, which refers to a closed economy with no government:
C = 100 + 0,75Y
Which of the following statements is/are correct?
a) When income is zero, private savings are 100.
b) The slope of the savings function is 0,75.
c) The savings function will be given by S = 100 + 0,25Y.Which of the following statements is/are correct?
a) The 45-degree line shows the equality between the variable measured on the vertical axis and the variable measured on the horizontal axis.
b) At any point above the 45-degree line, there is excess demand of goods and services. c) When aggregate spending is greater than total production, firms experience an unplanned increase in their inventories and respond by lowering their production.