MACROECONOMICS (MULTIPLE CHOICE QUESTIONS)

[1.1.5 (1.1.? (1.1.3 [1.1.9 [1.1.10 Given the import function, Z = 300 + 2,531\Question 1 Multiplechoice questions: Select one correct answer for each of the following. (1.1.1 (1.1.2 (1.1.3 (1.1.4 (1.1.5 An increase in the budget deficit is the result of: {a} Expansionary monetary policy; {bl Contractionary monetary policy; {c} Expansionary fiscal policy; {d} Contractionary fiscal policy. Company tax is a: [a] Progressive, direct tax; {b} Progressive, indirect tax; [c] Proportional direct tax; {d} Regressive indirect tax. In the base year, a country produced SDI units of output at a price of R6, each for a nominal GDP of R. This year it produces units of output at a price of R8,0 each. What is the percentage change in real GDP since the base year? {all 596; lb} 10%; [El 2096; {a} 1596. Which of the following statements about Fiscal Policy is INCORRECT? [a] In order to combat inflation, the South African Reserve Bank must apply a contractionary fiscal policy; {b} A contractionary scal policy can result in higher levels of unemployment; [c] Expansionary fiscal policy will increase the budget decit; {d} The application of fiscal policy will have no effect on aggregate supply in the MilAS model. If the inflation rate is 696 and Susan receives a 6% increase in income, then, over the year, Susan's: {a} Real and nominal income both remain unchanged; {bl Real and nominal income both rise; {cl Real income rises but nominal income remains unchanged; {d} Nominal income rises but real income remains unchanged