Economics 1B
COECB1-33
BLOCK 3 WRAP-UP SESSION (SUPP)
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Wrap-Up:
SUPP. EXAM PREPARATIONS
By the end of this class, you will be ready for the supplementary exam or at least ready …
What will be covered
in today’s lesson?
Prior Q’s & A’s
Wrap-Up Supp. Exam Scope
Supp. Exam Preparations
Emphasis from Scope:
Chapters
Supp. Exam Preparation
Tips; and Post Q’s & A’s
Prior Q’s & A’s
SUPP. EXAM SCOPE
Emphasis from Scope:
Chapter 23, 24, 26, 27,
28 & 32
Section A: Multiple-Choice Questions
EXAMPLE:
__________________changes when disposable income changes
and disposable income changes when real GDP changes.
A. Investment expenditure.
B. Government expenditure.
C. Consumption expenditure.
D. Net-Exports.
E. None of the above.
The unemployment that arises from the normal labour turnover.
A. Youth unemployment.
B. Structural unemployment.
C. Frictional unemployment.
D. Cyclical unemployment.
E. All of the above.
Section A: Multiple-Choice Questions (Solution)
EXAMPLE:
__________________changes when disposable income changes
and disposable income changes when real GDP changes.
A. Investment expenditure.
B. Government expenditure.
C. Consumption expenditure.
D. Net-Exports.
E. None of the above.
The unemployment that arises from the normal labour turnover.
A. Youth unemployment.
B. Structural unemployment.
C. Frictional unemployment.
D. Cyclical unemployment.
E. All of the above.
Section B: Short Questions
EXAMPLE:
List and explain:
A. three possible reasons for the depreciation of the Rand against the British
Pound. Consider only the forces of demand.
B. M3.
Section B: Short Questions (Answer)
EXAMPLE:
List and explain:
A. three possible reasons for the depreciation of the Rand against the British Pound. Consider only the
forces of demand.
B. M3.
A. Answer
1. World Demand for South African Exports
If the demand for SA exports decreases – there is a decrease in the demand for Rands. If there
are no changes in the supply of Rands, the Rand would depreciate against the British Pound.
B. Answer
M3 is M2 plus money that is deposited for longer time horizons such as pension funds.
Section C: Calculations
EXAMPLE:
C = 50 + 0.6Y
Ī= 100 G=200
1. What is the value of autonomous spending?
2. What is the value of the multiplier?
3. Determine the equilibrium level of income.
4. Calculate the equilibrium level of consumption.
5. Determine the amount that the government should spend to bring the
economy to full employment.
Section C: Calculations (Solutions)
Answer
1. Ā = (50+ 100+200) = R350
1 1
2. 𝛼 = = = 2.5
1−𝑐 1−0.6
3. In Equilibrium:
𝐴 = 𝐶 + 𝐼 ҧ + 𝐺 = 0.6𝑌 + 150 + 200 = 350 + 0.6𝑌
𝑌=𝐴
𝑌 = 𝐴 = 350 + 0.6𝑌
𝑌 − 0.6𝑌 = 350
0.4𝑌 = 350 OR Y= 𝜶 × A’ = 2.5 × 350 = R875 billion
350
𝑌=
0.4
𝑌 = 875 5. Answer
ΔY= 𝜶 ΔG
4. The equilibrium level of consumption: 200=2.5ΔG
C=𝐶̅+cY (1) 200/2.5
ΔG=R80 billion
C=50+0.6 × 875 = R575
Section D: Case Study
Tips: On illustrations
i. Always name and mark your axis;
ii. Always indicate shifts & movements with arrows; and
iii. Don’t forget to indicate new and old curves, where
necessary.
Lastly: Explain and illustrate, similar to Describe
and illustrate are two different instructions (read
and understand instructions, i.e. don’t waste time doing
what is not asked of you)
SUPP. EXAM TIPS
What Happens Next?
• Well done on finishing your lectures.
• Now it’s time to prepare for the exam and continue your studies outside of
the classroom.
• Before the exam, you need to do the following:
• Go onto myLMS and make sure to complete all the self-assessment
activities and quizzes under Week 1-7 or revisit your class lecturer notes.
• Reach out to me or your respective lecturer for any questions that you
might have on the content for block 3 as you prepare for the exam.
• Familiarize yourself with the summative assessment tile, i.e., for available
resources at your fingertips e.g., the general rules for the exam; and
• Finally, always read your updates e.g. Ms Teams Chats.
THANK YOU
Post Q’s & A’s
…………………………………………………………
COECB1 – 33 SUPP. WRAP-UP SESSION
BY: Mr. Fhatuwani Bale
Your Education! Your Future!
Virtually-Led 26 September 10:00 – 12:00
Sessions on
MS TEAMS 2024 AM
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