Hi there, I have five questions I need help with:

Question 1

In the combined ISTR and ADAS models where the AS curve is positively sloped, a downward shift of the TR line will, in final equilibrium, result in

Select one:

a.lower interest rates, higher prices, unchanged output

b.lower interest rates, lower prices, a rise in output

c.lower interest rates, higher prices, a rise in output

d.lower interest rates, lower prices, a fall in output

e.lower interest rates, higher prices, a fall in output

Question 2

A large oil exporter has a fixed exchange rate. When the oil price fell recently to below $40 per barrel it is likely that the country

Select one:

a.will sell more oil because of the lower price so it will have a balance of payments surplus and the Central Bank must buy $ and sell bonds

b.would have a balance of payments deficit so the Central Bank must initially sell $ and eventually take action to increase imports

c.would have a balance of payments deficit so the Central Bank must initially buy $ and eventually take action to decrease imports

d.would have a balance of payments deficit so the Central Bank must initially buy $ and eventually take action to increase imports

e.would have a balance of payments deficit so the Central Bank must initially sell $ and eventually take action to decrease imports

Question 3

In the combined ISTR and ADAS models where the AS curve is vertical, a shift to the right of the IS curve as a result of an increase in government spending will in final equilibrium result in

Select one:

a.lower interest rates, higher prices, unchanged output

b.lower interest rates, higher prices, a rise in output

c.lower interest rates, lower prices, a fall in output

d.lower interest rates, lower prices, a rise in output

e.lower interest rates, higher prices, a fall in output

Question 4

South Africa is a large gold exporter and has a flexible exchange rate.If the gold price rises from $1000 to $1200 we would expect that South Africa will

Select one:

a.be able to sell less gold because the price rose, so the Rand/$ exchange rate will weaken

b.have a balance of payments surplus so the Rand/$ exchange rate will weaken

c.have a balance of payments surplus so the Rand/$ exchange rate will strengthen

d.have a balance of payments deficit so the Rand/$ exchange rate will weaken

e.have a balance of payments deficit so the Rand/$ exchange rate will strengthen

Question 5

The individual labour supply curve has a positive slope because an increase in the real wage

Select one:

a.will lead to a reduction of time devoted to leisure

b.provides a disincentive for people outside of the labour force to enter the labour force

c.increases the purchasing power of workers and increases the bargaining power of unions

d.increases the bargaining power of unions

e.a and b are both correct