Suppose South Africans start to save more. This will result in a (4.1) shift of the (4.2) curve. The equilibrium level of output will (4.3) and the equilibrium price level will (4.4). The level of unemployment in the economy has (4.5). (4.6) fiscal policy can be implemented by the South African government to reduce unemployment. This involves (4.7) government expenditure and (4.8) tax. The effect of this fiscal policy is that the (4.9) curve will shift to the (4.10).

Suppose South Africans start to save more. This will result in a (4.1) shift of the (4.2) curve. The equilibrium level of output will (4.3) and the equilibrium price level will (4.4). The level of unemployment in the economy has (4.5). (4.6) fiscal policy can be implemented by the South African government to reduce unemployment. This involves (4.7) government expenditure and (4.8) tax. The effect of this fiscal policy is that the (4.9) curve will shift to the (4.10).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose South Africans start to save more. This will result in a _______________ (4.1) shift of the ________________ (4.2) curve. The equilibrium level of output will ________________ (4.3) and the equilibrium price level will __________________ (4.4). The level of unemployment in the economy has _____________ (4.5). ________________ (4.6) fiscal policy can be implemented by the South African government to reduce unemployment. This involves ________________ (4.7) government expenditure and __________________ (4.8) tax. The effect of this fiscal policy is that the ____________ (4.9) curve will shift to the _________________ (4.10).
The following information is provided in relation to the goods market: The consumption function is given as R450m + 0.75YD; Investment spending is R268m; Government spending is R150m; This economy follows a balanced budget approach; Calculate the equilibrium level of output in this economy. Show the formula and calculations.