Macroeconomics

Multiple Choice Questions

Ous tMom 10 Within the IS-LM model, which one of the following policy actions will result in an increase in the level of output and a decrease in the interest rate? Select one: O A. Expansionary fiscal policy in combination with a contractionary monetary policy. O B. Expansionary fiscal policy in combination with an expansionary monetary policy. O C. Contractionary monetary policy alone. O D. Expansionary fiscal policy alone.NetNom 1! Given the following information regarding the goods market, answer the following question. Autonomous consumption = R200 million; Investment spending = R100 million; Government spending = R300 million; Taxes = R60 million; Marginal propensity to consume = 0.75; Full-employment level of income = R2 460 million. The equilibrium level of income and output is _and to reach the full-employment level of income, taxes must decrease by Select one: O A. R2 220 million; R60 million O B. R2 160 million; R100 million O C. R2 580 million; R40 million O D. R2 220 million; R80 millionmyExams Dashboard Calendar Dashboard / My courses / ECS2602-22 EX10 / Welcome Message / ECS2602 Exam Oct/Nov 2022 PC Change in inflation rate 0 Which one of the following statements is INCORRECT? The diagram above illustrates ... Select one: O A. short-run to the medium-run adjustment process where there is a positive output gap. O B. initial short-run equilibrium is at point a, and since the output gap is positive, inflation increases. The central bank decided to increase the interest rate in reaction to this high inflation, and over time there is an upward movement along the IS curve. O C. that, at point a, the inflation rate is lower than at point a O D. that an increase in the interest rate decreases the output gap.Dashboard Calendar Dashboard / My courses / ECS2602 22-EX10 / Welcome Message / EC$2602-Exam Oct/Nov 2022 DustMOM . Study the following diagram and answer the question. Real Interest rate, r LM1 a - LM PC ( 71 1 - 7 1- 1 ) Change in inflation rate 81 0 Which one of the following statements is INCORRECT? The diagram above illustrates ...Qustrom 7 In an IS-LM model for an open economy, an expansionary monetary policy causes a ... Select one: O A. capital inflow, a depreciation of the exchange rate, and improved trade balance. O B. capital inflow, an appreciation of the exchange rate and a deterioration of the trade balance. O C. capital outflow, a depreciation of the exchange rate, and an improved trade balance. O D. capital outflow, a depreciation of the exchange rate and a deterioration of the trade balance.Which one of the following statements is INCORRECT? Select one: O A. If the population in South Africa grows at 5% per year, and the economic growth rate is 3% per year, a decline in the real GDP per capita occurs. O B. An increase of 20% in the price of cabbage is an example of inflation. O C. If total nominal output increases by 2% during a specific year, and the general price level increases by 4%, the real GDP will decrease, and the nominal GDP will increase. O D. If a country's labour force is 32 million and 6.4 million are unemployed for a period, then the unemployment rate is 20%