ECONOMICS FINALS

Disclaimer

  • Content on myLMS may slightly differ from lecturer-led sessions.
  • Uploaded material is essential for assessments preparation.

Teaching Methodology

  • Flipped Classroom approach used:
    • Pre-class: Students prepare through myLMS.
    • During class: Active learning with peer engagement and lecturer guidance.

Exam Structure

  • Sections & Time Allocation:
    • A: All chapters - 54 minutes
    • B: Chapters 22, 26, 27, 31, 32 - 54 minutes
    • C: Chapters 23, 26, 28 - 45 minutes
    • D: Chapters 29, 32 - 27 minutes

What To Expect

Section A – MCQs Examples

  1. Identification of unemployment types.
  2. Components of aggregate expenditure.
  3. Effects of tax rate increases in the Keynesian model.
  4. Description of monetary policy.
  5. Explanation of trade deficits.

Section B – Short/Long Response Examples

  1. Time lags affecting discretionary fiscal policy:

    • Recognition lag
    • Law-making lag
    • Impact lag

  2. Fiscal vs. Monetary Policy:

    • Fiscal: Government-led through spending and tax changes.
    • Monetary: Central bank (SARB) led through interest rate adjustments.

  3. Impact of increased demand for Iranian oil on the Rand:

    • Increased supply of Rands in forex market leads to Rand depreciation.

Section C – Calculations/Practical Questions

  1. Calculating equilibrium income, autonomous spending, and multiplier effect.
  2. CPI calculation and inflation rate for grocery and toiletries spending changes.

Policy Recommendations

  • Recommendation for Utopia to use expansionary fiscal policy to stimulate economic growth and avoid recession:
    • Increase government spending or reduce tax rates.

AS-AD Model

  • Effects of policy intervention:
    • Increased government spending raises aggregate demand.
    • Multiplier effect leads to further increases in demand and equilibrium.

Next Steps

  • Review material for the upcoming assessments due on 13 April 2026.