RAs Econ 144 Exam 1 2012

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Ekon. 144 Eksamen 1 20112 / Econ. 144 Exam 1 2011
Afdeling A/Section A
1. b), rele geldbalanseffek beskryf die verandering in die koopkrag van geld wat lei tot `n
verandering in monetre rykdam wat a.g.v. 'n verandering in die prysvlak plaasvind.
/the real balance effect describes the change in purchasing power of money, which lead to
a change in the monetary wealth as a result of a change in the price level.
2. a)
3. b), Belasting is fiskale beleid, SARB formuleer slegs monetre beleid./ taxes is a fiscal
policy instrument. The SARB only formulates monetary policy
4. b), Die hoeveelheid geld gevra neem toe soos die geldvoorraad styg want `n toename in
M lei tot `n afname in die rentekoers. /the quantity of money demanded rises as the money
supply increases. This is because an increase in M will lead to an decrease in the interest
rate
5. a)
6. a)
7. b), produsente surplus neem toe /producer surplus increases
8. a), lopenderekening balans = handelsbalans + unilateral oordragte na buiteland (unilateral
oordragte na buiteland is eenrigting betalings)/ current account balance = balance of
trade + unilateral transfers abroad (unilateral transfers to abroad is one-way payments
payments)
9. b), kapitaalrekening balans=invloei van buitelandse kapitaal-uitvloei van binnelandse
kapitaal
/ capital account balance = inflow of foreign capital - outflow of domestic capital
10. a) wanneer die rand depresieer, skuif die AD kurwe na regs (omdat SA goedere
goedkoper raak relatief tot die res van die wereld) en die SRAS kurwe skuif na links
(omdat insette wat SA firmas invoer relatief duurder raak) / when the rand depreciates,
the AD curve shifts to the right (because SA goods become cheaper relative to the rest of
the world) and the SRAS curve shifts to the left (because inputs that SA firms import
become more expensive)
11. d)
12. a), klassieke ekonome glo dat Say se wet geld in die geldmark, I=S en rentekoers pas aan
sodat dit gebeur./classical economists believe that Says law holds in the money market,
I=S and the interest rate adjust in a way that this happens.
13. b)
14. c)
15. c), korttermyn Phillipskurwe toon die KT afruiling tussen inflasie en werkloosheid.
/short run Phillips-curve shows the ST trade-off between inflation and unemployment
16. d)
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17. c)
18. b), maks/max. M=R*(1/r)=500 000(1/0.05)= 10 000 000
Maks. geld deur banksektor geskep/Max. amount of money created in the banking sector
= 10 000 000-500 000=9 500 000
19. a), MV=PQP=MV/Q
20. c)
21. c) (Although, I believe the answer is d, you decide...p 362)
22. d)
23. d)
24. b)
25. d), komparatiewe voordeel: voordeel wanneer `n land `n produk kan produseer teen `n
laer geleentheidskoste (i.t.v. produksie van ander produkte opgegee) as `n ander land.
/ comparative advantage: when a country has an advantage in the production of a
product, because the country can produce the product at a lower opportunity cost (in
terms of the production of other goods given up) than other country.
26. d)
27. a), Handelsbalans=handelsgoedere uitgevoer-handelsgoedere ingevoer
/ Trade balance = imported merchandise exported merchandise
28. d)
29. a)
30. c), wanneer die SA rentekoers afneem wil beleggers eerder in `n ander land investeer wat
`n hor opbrengs aanbied, dus daal die vraag na rande. Dit veroorsaak dat die rand
depresieer. En `n depresiasie van die rand beteken dat SA goedere en dienste relatief
goedkoper is as die res van die wereld, uitvoere neem toe en AD neem toe. Dus skuif die
AD kurwe na regs en rele BBP styg.
/when the SA interest rate falls investors will prefer to invest their assets in another
country in which they can gain higher returns. That is why the demand of rand will fall.
This will cause the rand to depreciate with respect to other currencies. And a
depreciation of rand will make SA goods and services relatively cheaper than the rest of
the world, so exports will rise and AD will increase as a result. Thus the AD-curve will
shift to the right and increase real GDP.
Afdeling B/Section B
Vraag 1/Question 1
`n verandering in die aanbod van arbeid beteken dat die hoeveelheid arbeid aangebied
teen elke loonkoers verander en dus veroorsaak dit dat die totale aanbodkurwe verskuif. (loonkoers daal)
`n verandering in die hoeveelheid arbeid aangebied a.g.v. werkers wanopvattings dat
hulle rele loon verander het veroorsaak dat daar `n beweging langs die totale
aanbodkurwe plaasvind.
/
Change in the supply of labour: a change in the quantity supplied of labour at each wage rate
which leads to a shift in the supply curve. (because wage rate decrease)
A change in the quantity of labour supplied as a result of workers misperceptions that their
real wage changed leads to a movement along the total supply curve.
Vraag 2/Question 2
Punt 1: Q<QN en U>UN , dus is die

ekonomie in `n resessionre gaping
Oorskot arbeid omdat U>UN wat afwaartse
druk op lone sit
Lone daal en die SRAS1 skuif na regs tot
SRAS2 omdat die ekonomie selfregulerend
is
By punt 2 is die ekonomie in LT ewewig.
Q=QN en U=UN dus het rele BBP
toegeneem, die werkloosheidskoers
afgeneem en die prysvlak afgeneem.
SRAS2
Point 1: Q<QN and U>UN, the economy is

in a recessionary gap
There is a surplus of labour (U>UN) putting
downward pressure on wages
The economy is self-regulating that is why
Wages fall and SRAS1 shifts to the right to
SRAS2
At point 2, the economy LT equilibrium.
Q=QN and U=UN. real GDP increased, unemployment
decreased and the price level decreased.
Vraag 3/Question 3
Stem nie saam dat Wet van Say geld in geldekonomie / Disagrees that Say's law holds in money
economy.
Say se wet: I=S; `n toename in S lei tot `n afname in die rentekoers en gevolglik `n gelyke
toename in I. / Say's Law: I = S; an increase in S leads to a decrease in the interest rate and thus
an equal increase in I.
Indien S toeneem nie noodwendig gelyke toename in I nie. Dus moontlik dat S toeneem TE
afneem / If S increase not necessarily an equal increase in I. Therefore, possible that S
increase TE decrease.
Individue en besighede S en I vir verskeie redes en hulle besluite oor hoeveel om te S & I hang
nie net af van rentekoers. / Individuals and businesses S and I for a host of reasons. Interest rate
is not the only factor influencing S & I.
S = meer sensitief vir in Y as vir in rentekoers (i). Soms spaar individue vir `n
spesifieke spaar doelwit, wat beteken dat `n verandering rentekoers nie noodwendig die
hoeveelheid wat gespaar word verander nie / S is more responsive to in Y than to in
interest rate (i). Sometimes individuals save for a specific savings goal, which means that
a changing interest rate does not necessarily change the amount saved.
I = meer sensitief vir tegnologiese veranderinge, sakevertroue en innovasies as vir

rentekoers (i) / I more responsive to technological changes, business expectations, and
innovations than to interest rate (i).
Vraag 4/Question 4
4.1.
1. Die prysvlak is konstant totdat volle indiensname bereik word. / The price level is
constant until full employment is reached.
2. Die monetre kant van die ekonomie word uitgesluit. / The monetary side of the economy
is excluded.
(Geen buitelandse sektor is die 3de aanname en is reeds in vraag genoem (geslote ekonomie).
/ No foreign sector (closed economy) is the 3rd assumption and is given in the question.)
4.2. C = Co + MPC x (Y-T) = 10 + 0.95(Y-40)
4.3. Die stelling is onwaar, die owerheid het `n gebalanseerde begroting want G=T=40miljard
/The statement is flase, the country has a balanced budget because G=T=40million
4.4. ewewig voorwaarde/equilibrium condition: TP=TE=Y
Y= C+I+G Y = 10 + 0.95(Y-40) + 40 + 40
0.05Y=52 Y= R1040 miljard/million
4.5. Tax multiplier = [mpc(k)] = - 0.95(1/0.05)= -19
4.6. `n verandering in belasting het `n indirekte effek op rele BBP via inkome. Die effek van die
verandering in belasting op rele BBP word gedemp deur mpc. Die rede daarvoor is dat wanneer
belasting verander, verander besteebare inkomste, maar die totale verandering in besteebare
inkomste word nie spandeer nie, `n gedeelte word gespaar. Yd = C + S.
/a change in taxes has an indirect effect on real GDP via income. The effect of the change in tax
on real GDP is dampened by mpc. The reason for this is that when tax changes, disposable
income changes, but not the total change in disposable income is spent, a portion is saved.
Yd = C + S
Vraag 5/Question 5
Banke dra fondse oor vanaf partye wat fondse wil uitleen na partye wat fondse wil leen.
Ongunstige keuse: Die risiko, voordat die lening gemaak word, dat die partye aan die een kant
van die transaksie wat inligting het wat die ander party nie het nie, selfselekteer op `n manier wat
die partye aan die ander kant van die transaksie negatief benvloed. Word opgelos deur inligting
oor die moontlike klient in te samel (credit checks).
Morele risiko: Die risiko, nadat die lening gemaak is, dat een party wat deel is van `n transaksie
sy optrede verander op `n verskuilde wyse wat die ander party negatief benvloed. Word opgelos
deur lenings vir spesifieke doeleindes uit te leen en deur gereeld inligting en bewyse te vra om
seker te maak dat die lening korrek benut word.
/Banks transfer funds from the lenders to the borrowers of funds.
Adverse selection: Before a loan is made, the risk exists that one of the parties of the transaction
may have information that the others do not have, such that they will self-select themselves in a
way that negatively affect the other party of the transaction. This can be resolved by gathering
information of the client (credit checks for example).
Moral risk: After the loan has been made, the risk exist that either of the two parties of the
transaction may change their behavior in a hidden manner, such that it may negatively affect the
other party. In order to resolve this problem a questionnaire can be set out to ask what the
borrowed funds wil be used for. This can provide evidence that the loan is being utilized correctly
Vraag 6/Question 6
Doelwit afhanklikheid: die hoofdoel van monetre beleid word deur die owerheid bepaal, inflasie
teikening in SA)
Instrument onafhanklikheid beteken dat die SARB vryheid het in die gebruik van verskillende
monetre beleid instrumente om die hoofdoelwit te bereik (repokoers, kontantreserwevereiste of
opemarktransaksies).
/ Goal dependency: the main objective of monetary policy is determined by the government,
inflation targeting in South Africa)
Instrument independence means that the SARB has freedom to use one of various monetary
policy instruments to achieve the main objective (repo rate, cash reserve requirement or open
market transactions).
Vraag 7/Question 7
7.1. `n verhoging in die geldvoorraad verhoog banke se reserwes wat beteken dat banke meer
geld beskikbaar het om uit te leen, dus neem die aanbod vir uitleenbare fondse toe.
/an increase in the money supply increases banks' reserves, which means that banks have more
money available to lend, thus increasing the supply for loan funds.
7.2. `n verhoging in die geldvoorraad lei tot `n toename in AD, die AD kurwe skuif na regs en
dus is daar `n toename in rele BBP./ an increase in the money supply leads to an increase in AD,
the AD curve shifts to the right and thus there is an increase in real GDP.
Vraag 8/Question 8
Die Keynesiaanse transmissie meganisme is indirek. Keynesiaanse ekonomie glo dat `n
verandering in die geldmark (MS dus Monetre beleid), slegs die goedere en dienste mark
benvloed indien die verandering in die geldmark lei tot `n verandering in investering sadat AD
verander. Rentekoersonsensitiewe investering is `n voorbeeld van `n blokkasie van die indirekte
Keynesiaanse transmissie meganisme. Indien investering rentekoersonsensitief is, beteken dit
dat investering glad nie verander indien die rentekoers verander nie (bv. investering styg nie
indien die rentekoers daal nie).
In die mark vir investeringsgoedere is die investeringskurwe dus vertikaal, wat aantoon dat
investering glad nie benvloed word deur die rentekoers nie. Wanneer die geldvoorraad verhoog
word in die geldmark met die doel om die ekonomie te stimuleer en AD na regs te verskuif,
sal rentekoersonsensitiewe investering veroorsaak dat investering nie toeneem weens die
toename in die geldvoorraad nie en gevolglik sal die AD-kurwe ook nie regs skuif in die
goedere-en-dienste mark nie. Uitbreidende monetre beleid slaag dus nie daarin om AD en
rele BBP te verhoog en werkloosheid te verlaag nie.
Investering kan rentekoersonsensitief wees weens pessimistiese vooruitsigte deur
ondernemings. Wanneer sakevertroue onder ondernemings laag is, sal investering nie toeneem
nie, selfs al is die rentekoers laag. /
Interest-insensitive investment is an example of a blockage that can occur in the indirect
Keynesian transmission mechanism. If investment is interest-insensitive, it means that
investment does not change when the interest rate changes (for example investment does
not increase when the interest rate decreases). In the market for investment goods, the
investment curve is vertical, which indicates that the interest rate has no effect on investment.
When the money supply is increased in the money market with the aim of stimulating the
economy and shifting AD to the right, interest-insensitive investment will cause investment
not to increase due to the increase in the money supply and therefore the AD curve will
also not shift to the right in the goods and services market. Expansionary monetary policy
therefore does not succeed to increase AD and real GDP and decrease unemployment.
Investment can be interest rate insensitive if firms have a pessimistic outlook about the
economy. When business confidence is low, investment will not increase when the interest rate is
decreases.
Vraag 9/Question 9
`n Toename in AD lei tot n toename in produksie

Firmas het dus n groter vraag na arbeiders omdat hulle meer wil produseer en die vraag
na arbeid styg.
Meer mense word indiensgeneem en dus daal werkloosheid en die groter vraag na arbeid
lei tot n toename in die lonekoers.
Daar bestaan dus n inverse verhouding tussen werkloosheid en looninflasie wanneer
totale vraag toeneem in die KT.
In die LT skuif die SRAS na links tot Q=QN en U=UN en die prysvlak het gestyg. Dus
geen LT afruiling tussen loon inflasie en werkloosheid nie.
an increase in AD will lead to an increase in production

Firms will have a greater demand for workers, because they want to increase their output
that is why their demand for labour rises
More people will be employed and thus unemployment rate will fall and the greater
demand of workers will increase the wage rate
There exists an inverse relationship between unemployment and wage-inflation when total
supply increases in the SR
In the LR the SRAS will shift to the left and the economy will end up where Q=QN en
U=UN and the price level is higher. Thus there is no LR trade-off between wage inflation
and unemployment.
Vraag 10/Question 10
10.1.
Produksiefunksie: 'n wiskundige verwantskap wat wys hoe insette en beskikbare

tegnologie die rele BBP bepaal. T verteenwoordig tegnologie, K verteenwoordig
kapitaal en L verteenwoordig arbeid.
`n verandering in L lei tot `n beweging langs die produksiefunksie. rele BBP verander.
`n verandering in K of T lei tot `n verskuiwing van die produksiefunksie, opwaarts indien
K of T toeneem (Rele BBP neem toe teen elke vlak van L).
Production Function: A mathematical relationship that shows how inputs and available
technology determine real GDP. T represents technology, K represents capital and L
represents labor.
a change in L leads to a movement along the production function. real GDP change.
a change in K or T leads to a shift of the production function, if K or T increases upward
(Real GDP increases at each level of L).
10.2.
Suid-Afrika het `n baie ho vlak van strukturele werkloosheid, hoofsaaklik a.g.v. 'n tekort aan
vaardighede in die arbeidsmag in vergelyking met die vaardighede wat nodig is vir ekonomiese
ontwikkeling.
Die verskuiwing in die ekonomiese struktuur van primre bedrywe wat relatief ongeskoolde
arbeid gebruik na sekondre en tersire bedrywe wat relatief meer geskoolde werkers vereis
is een van die redes vir die toenemende vraag na geskoolde werkers en die toename in
werkloosheid onder ongeskoolde Suid-Afrikaners.
Die gebrekkige onderwysstelsel in Suid-Afrika is een van die redes vir die lae opvoedings- en
vaardigheidsvlakke. Ho arbeidskoste en lae produktiwiteit veroorsaak dat firmas beweeg na
meer kapitaal intensiewe produksie. Daar is ook `n groot groep ontmoedigde werkers in SA wat
beteken dat hulle moed verloor het om werk te vind en dus nie meer aktief werk soek nie. Baie
goed gekwalifiseerde Suid-Afrikaners verlaat SA om in die buiteland te gaan werk.
Al hierdie faktore impliseer dat SA arbeid nie ten volle benut word nie.
/ South Africa has a very high level of structural unemployment , mainly because a shortage of
skills in the labor force compared to the skills needed for economic development .
The shift in the economic structure of primary industries using relatively unskilled labor to
secondary and tertiary industries that require relatively more skilled workers is one of the
reasons for the increasing demand for skilled workers and the increase in unemployment among
unskilled South Africans .
The poor education system in South Africa is one of the reasons for the low education and skill
levels . High labor costs and low productivity causes firms to move to more capital-intensive
production . There are also a large number of discouraged workers in South Africa which means
they lose hope to find work and so are no longer actively seeking employment. Many well qualified South Africans leaving SA to go abroad.
All these factors imply that SA labor is not fully utilized
Vraag 11/Question 11
Mark vir $
Gestel die rele rentekoers in SA inneem toe relatief tot die rele rentekoers in die VSA
Beleggers sal eerder in SA finansiele produkte wil bele wat hor opbrengs lewer as die
VSA finansiele produkte.
Amerikaners wil dollars ruil vir rande, dus styg die vraag na rande en dus styg die aanbod
van dollars.
Die rand appresieer en die dollar depresieer. Minder rande is nodig om `n dollar te koop.
Market for $
Suppose take the real interest rate relative to the real interest rate in the U.S.
Investors would rather invest in SA financial products, which offers a higher returns than
the U.S. financial products.
Americans want dollars in exchange for rands, thus increasing the demand for rands and
increases the supply of dollars.
The rand has appreciated and the dollar depreciates. Fewer rands are needed to buy a dollar.
R/$ 1
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ExtraClassesStb...

Punt 1: Q<QN en U>UN , dus is die

Point 1: Q<QN and U>UN, the economy is

I = meer sensitief vir tegnologiese veranderinge, sakevertroue en innovasies as vir

`n Toename in AD lei tot n toename in produksie

an increase in AD will lead to an increase in production

Produksiefunksie: 'n wiskundige verwantskap wat wys hoe insette en beskikbare

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