100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
ECS1601 assignment 5 2024 | Due 25 September 2024 $2.88   Add to cart

Exam (elaborations)

ECS1601 assignment 5 2024 | Due 25 September 2024

3 reviews
 210 views  30 purchases
  • Course
  • Institution

UNISA  2024  ECS1501-24-S2  Assessments  Assessment 5 QUIZ Started on Thursday, 19 September 2024, 1:23 PM State Finished Completed on Thursday, 19 September 2024, 2:24 PM Time taken 49 mins 9 secs Marks 20.00/20.00 Grade 100.00 out of 100.00

Preview 2 out of 105  pages

  • September 19, 2024
  • 105
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

3  reviews

review-writer-avatar

By: mphokhumalomd • 1 month ago

review-writer-avatar

By: tndhlela713 • 1 month ago

review-writer-avatar

By: masenpoes • 1 month ago

avatar-seller
9/19/24, 1:27 PM Assessment 5: Attempt review




UNISA  2024  ECS1501-24-S2  Assessments  Assessment 5




QUIZ

Started on Thursday, 19 September 2024, 1:23 PM
State Finished
Completed on Thursday, 19 September 2024, 2:24 PM
Time taken 49 mins 9 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00




Question 1
Correct

Mark 1.00 out of 1.00




Suppose sanctions are imposed on a small open economy which leads to a decrease in autonomous imports. What will
happen to the aggregate expenditure curve if exports remain unchanged?


a. It will stay the same.
b. It will shift upwards. 
c. It will shift downwards.
d. The slope becomes atter



If imposed sanctions would imply that there will be less autonomous imports (Z) into the country, this will increase net
exports (X-Z) at every income level, and therefore aggregate spending will increase at every income level. This will be
illustrated by a parallel upward shift of the aggregate expenditure curve. If imposed sanctions would imply that there will be
less autonomous imports (Z) into the country, this will increase net exports (X-Z) at every income level, and therefore
aggregate spending will increase at every income level. This will be illustrated by a parallel upward shift of the aggregate
expenditure curve.

, Question 2

Correct

Mark 1.00 out of 1.00




Suppose the government implements an expansionary scal policy to nance e-toll gantries. Required ∆Y = R1 000, the
marginal propensity to consume is 50% and the proportional tax rate is 40%. How much will government expenditure have to
change to reach the required change in equilibrium income?


a. R699 
b. R800
c. R1 000
d. R1 200



Given that ∆Y= multiplier x ∆G. The required change in income is 1 000 and the multiplier is calculated as: The marginal
propensity to consume is 0,5 and proportional tax rate is 0,4. Therefore, the multiplier will be 1/ [1-c(1-t)] = 1/ [1-0,5(1-0,4)]
=1,43. Therefore, to calculate the change in government expenditure that will bring about an increase in G equal to 1 000:
ΔG=ΔY/α = 1 000/1,43 = 699. So for the government to change national income by 1 000, they will have to increase spending
by 699.




Question 3
Correct

Mark 1.00 out of 1.00




If the government wishes to reduce the flow of money in the circular flow of income and spending, it can ______.


a. increase government spending
b. increase the tax rate 
c. increase investment spending
d. decrease the tax rate



To reduce money in the economy, the government can either reduce government spending or increase the tax rate. If the
government increases the tax rate, disposable income decreases and therefore, aggregate spending will also decrease.An
increase in investment is an injection into the circular flow of income and spending.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 MiMemo. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $2.88. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79650 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$2.88  30x  sold
  • (3)
  Add to cart