University of South Africa ECS 2602 Exam Practice Questions and Answers

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University of South Africa ECS 2602 Exam Practice Questions and Answers Which one of the following statements is not a macroeconomic issue? 1. The unemployment rate in South Africa, according to the... strict definition, was 26,6% in 2016. 2. The drought experienced in 2015/16 reduced many crop harvests and caused food price inflation in South Africa. 3. The annual inflation rate in South Africa rose from 2015 to 2016. 4. Because of high inflation, it is expected that the interest rate will increase. 5. The drought experienced in 2015/16 reduced the total maize crop harvested and caused the price of maize in South Africa to rise. Which of the following statements are correct? a. In macroeconomics we focus on the determination of the demand for and supply of individual goods and the determination of their prices. b. The impact of fiscal and monetary policy on the level of output and income is an important topic in this module. c. If the population of 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. d. Expansionary monetary policy during a recession is an example of stabilisation policy. e. An expansionary fiscal policy implies a decrease in government spending and/or an increase in taxation. 1. a, b and c 2. b, c and d 3. b, d and e 4. Only b and c 5. b, c and e [Show More]

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