Exam (elaborations)
Exam (elaborations) ECS1601 Assignment 04 semester 2 2022 ECS 1601 (ECS1601) Economics for South African Students, ISBN: 9780627033421
- Course
- Institution
- Book
ECS1601 Assignment 04 semester 02 2022
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Ecs1501 Assignment 4 Semester 1 2023
-
Macroeconomics 1st year [University] Notes [ECO10B]
-
ECS1501 Assignment 04 semester 01 2023 Exam (elaborations) ECS1501 - Economics IA Economics for South African Students, ISBN: 9780627033421
1 review
By: Nkawz • 2 year ago
By: Oustandingtutors • 1 year ago
Thank you so much for the review.
Seller
Follow
Oustandingtutors
Reviews received
Content preview
9/26/22, 10:02 AM Assessment 4: Attempt reviewStarted on Friday, 23 September 2022, 12:05 PM
State Finished
Completed on Monday, 26 September 2022, 9:59 AM
Time taken 2 days 21 hours
Marks 14.00/16.00
Grade 87.50 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Given the following information for a small open economy: C = R1 000 + 0,2Yd, The government spending is R300, The proportional tax
rate is 28%, Exports are R100, Z = R20 + 0,1Y, and Investment is R200.
Calculate the multiplier and equilibrium level of income.
a. 1,05 and R1 659 respectively
b. 1,32 and R2 086 respectively
c. 1,85 and R2 923 respectively
d. 1,60 and R2 528 respectively
To calculate the multiplier: α = 1/[1-c(1-t) + m] = 1/[1-0,2(1-0,28) + 0,1] = 1,05. To calculate the equilibrium level of income: Ye = multiplier
x autonomous spending Ye = 1,05 x R[1 000 + 300 + 200 + 100 - 20] = 1,05 X R1 580 = R1 659.
Question 2
Correct
Mark 1.00 out of 1.00
Assuming an open economy with both government and foreign sector, use the following information to answer the question.
Consumption spending increased from R3 750 to R5 700, and income increased from R5 000 to R7 600 in normal terms.
t = 0.20
m = 0.12
His marginal propensity to consume is….. (round to 2 decimals)
a. 0.75
b. 0.80
c. 0.25
d. 0.52
Please see pages 115 and 116 of the prescribed book. The marginal propensity to consume (c) is the ratio between a change in
consumption spending and the change in income. It shows the proportion of additional income that will be spent on goods and services. It
is calculated as follows: c = ∆C/∆Y = (5700-3750)/(7600-5000) = 1950/2600 = 0.75
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=5784967&cmid=213767 1/10
, 9/26/22, 10:02 AM Assessment 4: Attempt review
Question 3
Correct
Mark 1.00 out of 1.00
The question is based on the information provided below:
Government spending = R500
Exports = R300
Autonomous consumption = R200
Autonomous imports = 0
Investment expenditure = R100
Marginal propensity to consume = 0,6
Marginal propensity to import = 0,1
Proportional tax rate = 0,25
What is the equilibrium level of income Y* in the given model?
a. R1 598
b. R1 692
c. R1 757
d. R1 800
e. R2 000
A=C+I+G+X-Z=C ̅+c(i-t)Y+I ̅+G ̅+X ̅-(Z ̅+mY) At equilibrium Y=A Thus Y=C ̅+c(i-t)Y+I ̅+G ̅+X ̅-(Z ̅+mY) Y = R200 + 0,6 (1 - 0,25)Y + R100 +
R500 + R300 – (R0 + 0,1Y) Y = 0,45Y + R1 100 – R0 - 0,1Y Y = R1 100 + 0,45Y – R0,1Y Y = R1 100 + 0,35Y Y–0,35Y = R1 100 0,65Y= R 1 100
Y = R1 100/0,65 = R1 692,31 ≈ R 1692.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=5784967&cmid=213767 2/10
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Oustandingtutors. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.21. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
84669 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now