ECS 2602 assignment-answers.

Dear student Let us formally welcome you to the Macroeconomics module and wish you well in all your endeavours. Please take note of our contact telephone numbers. Listed below are the contact details of the lecturers responsible for the module. Name of lecturer Email address Telephone number (Inside SA) Telephone number (Outside SA) Mrs T Uys Mrs S Kennedy-Palmer Kindly direct content-related queries to your e-tutor on the discussion forum of your e-tutors website on myUnisa and contact the university administration if you have any problems regarding all others matters. How can students contact Unisa? Visit the myUnisa website. Click on the "Contact" icon where you will find all the necessary contact details. Please only contact your lecturers with content-related queries if you are unsatisfied with the response of your e-tutor. We trust that you will avail yourselves of the opportunity presented to you. 1. HOW MUCH TIME MUST I SPEND STUDYING ECS2602? ECS2602 is a semester module with a credit value of 12 that must be completed for a B Com degree in Economics. Each credit is equivalent to 10 notional hours. This means that to be successful, the average student must spend 120 notional hours on this module. The notional hours includes time that is spent studying the learning units, completing the activities in TL102, doing assignments, preparing for the examination, and writing the examination. Students whose capabilities are below average must therefore spend more than 120 notional hours studying ECS2602 in order to be successful. That boils down to 30 work days (4 hours per day) or 60 work days (at least 2 hours per day) that must be devoted to this module in order for the average student to pass it. Each module is designed in this way. In other words, you cannot plan your semester based on completing assignments only. 2. ANSWERS TO ASSIGNMENT 01 (Unique number: ) The first assignment was based on learning units 1 to 3. If you experience any problems with these sections, work through the activities in TL102 again. Downloaded by Glichelle Delport () lOMoARcPSD| ECS2602/201 3 The correct answers are: Question Option Question Option Question Option 1 4 13 2 25 4 2 5 14 3 26 3 3 Not Marked 15 2 27 5 4 5 16 3 28 4 5 5 17 4 29 5 6 3 18 3 30 1 7 5 19 1 31 3 8 3 20 3 32 1 9 3 21 4 33 3 1 2 12 1 24 2 Questions 1 and 2 are based on learning unit 1 of the study guide. 1. The correct option is 4. Only statements c and d are correct. Statement a is incorrect. In this module, we study both the demand and supply side of the economy. Statement b is incorrect. Gross domestic product (GDP) is the total value of all final goods and services produced within the boundaries of a country in a particular period. Statement c is correct. If the rise in the general price level is more than the rise in nominal production then the real production (GDP) declines while the nominal production (GDP) increases. Statement d is correct. Statement e is incorrect. An expansionary monetary policy entails an increase in the money supply to bring about a decrease in the interest rate in order to increase the demand for goods in the economy. We follow the traditional approach to monetary policy in this module. 2. The correct option is 5. Only statements a and e are correct. Statement a is correct. Statement b is incorrect. The policy variables of fiscal policy are government spending and taxation. Compare statement c and e. Statement c is incorrect while statement e is correct. Contractionary monetary policy implies a decrease in the money supply and therefore results in an increase in the interest rate. Statement d is incorrect. An increase is taxes implies the implementation of a contractionary fiscal policy. Questions 3 to 25 are based on learning unit 2 of the study guide. 3. There was a mistake in question 3. Option 1 and 2 have the same answer. Therefore, the question was not marked. [The correct options are 1 and 2. GDE is the total value of spending on final goods and services within the borders of a country, including imports but excluding exports. GDE is the total value of spending in South Africa; therefore, it represents the domestic demand for goods.] Downloaded by Glichelle Delport () lOMoARcPSD| 4 4. The correct option is 5. Statements b and c are correct. The GDP is the total value of all final goods and services produced within the boundaries of a country in a particular period and therefore exclude imports of goods and services. Statement a is incorrect since it refers to all goods and services and not only final goods and services. Statement d is incorrect since GDP measures production inside the boundaries; therefore, imports are excluded.