Q.1.5If the inflation rate is 6% and Susan receives a 6% increase in income, then, overtheyear,Susan's:(a)Real and nominal income both remain unchanged;(b) Real and nominal income both rise;(c)Real income rises but nominal income remains unchanged3;(d)Nominal income rises but real income remains unchanged.Q.1.6Given the import function, Z = 300 + 2/3Y, which of the following statements iscorrect?(a) The marginal propensity to save is 1/3;(b) The induced component is 300;(c) 2/3 is the proportion of any income spent on imports;(d) None of the statements is correct.Q.1.7An increase of R5 billion in income in a macroeconomy leads to an increase in R3billion in consumption spending. From this information, we can determine that themarginal propensity to save in this economy is:(a) 0.6;(b) 0.5;(c) 0.3;(d) 0.4.Q.1.8Mr Brown has recently been retrenched. The firm he worked for had to retrencha number of staff due to the downturn in the economy. Mr Brown has notmanaged to find alternative employment. We can say he isunemployed.(a) Structurally;(b) Cyclically;(c) Seasonally;(d) Frictionally. Q.1.9If the CPI was 106 in 2013 and 116 in 2014, the inflation rate in 2014 was:(a) 106%;(b) 116%;(c) 9.4%;(d)16%Q.1.10Strikes across a wide range of industries in South Africa in the first half of 2020can be illustrated in the AD-AS model as a:(a) Leftward shift of the AD curve;(b) Rightward shift of the AD curve;(c) Leftward shift of the AS curve;(d) Rightward shift of the AS curve.

Real income is what proportion money a personal or entity makes after accounting for inflation. it's…

Q.1.5 If the inflation rate is 6% and Susan receives a 6% increase in income, then, over the year, Susan's: (a) Real and nominal income both remain unchanged; (b) Real and nominal income both rise; (c) Real income rises but nominal income remains unchanged; (d) Nominal income rises but real income remains unchanged. Q.1.6 Given the import function, Z = 300 + 2/3Y, which of the following statements is correct? (a) The marginal propensity to save is 1/3; (b) The induced component is 300; (c) 2/3 is the proportion of any income spent on imports; (d) None of the statements is correct. Q.1.7 An increase of R5 billion in income in a macroeconomy leads to an increase in R3 billion in consumption spending. From this information, we can determine that th marginal propensity to save in this economy is: (a) 0.6; (b) 0.5; (c) 0.3; (d) 0.4.

Q.1.5 If the inflation rate is 6% and Susan receives a 6% increase in income, then, over the year, Susan's: (a) Real and nominal income both remain unchanged; (b) Real and nominal income both rise; (c) Real income rises but nominal income remains unchanged; (d) Nominal income rises but real income remains unchanged. Q.1.6 Given the import function, Z = 300 + 2/3Y, which of the following statements is correct? (a) The marginal propensity to save is 1/3; (b) The induced component is 300; (c) 2/3 is the proportion of any income spent on imports; (d) None of the statements is correct. Q.1.7 An increase of R5 billion in income in a macroeconomy leads to an increase in R3 billion in consumption spending. From this information, we can determine that th marginal propensity to save in this economy is: (a) 0.6; (b) 0.5; (c) 0.3; (d) 0.4.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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