Whatsapp 0645167275
Whatsapp 0645167275
Whatsapp 0645167275
Whatsapp 0645167275
Whatsapp 0645167275
Whatsapp 0645167275
Whatsapp 0645167275
Assessment 1: Videos and Questions
Assessment 1 is based on learning units 1, 2 and 3 (60 marks)
How to complete Assignment 1:
Complete all 30 fill-in questions below in the spaces provided. Save the document as PDF
document. Upload the assignment on the ECS2602 module site on myUnisa as a PDF
document. No email submissions will be accepted.
Learning Unit 1 (18 marks)
Watch the following video and answer questions 1 to 5 based on the video. (8 marks)
When answering the questions, use the exact words as the presenter.
The Difference Between Fiscal and Monetary Policy (youtube.com)
Same video: different link: https://youtu.be/o0Yt6buayZ4?si=YdiNNhPB5sn_XSJC
Question 1:
1|Page
, According to the video, fiscal policy is the use of government spending and taxation to influence
the economy. (2)
Question 2:
Fiscal policy is a powerful tool. The key to its power is the budget (1)
Question 3:
In the video, there is a reference to supply-side economists, like Milton Friedman (1)
Question 4:
Monetary policy is the way the central bank influences the economy through the management of
the _interest rate and money supply (3)
Question 5:
The central bank system in the United States is called the The Federal Reserve System (1)
Work through LU 1 of the study guide and answer questions 6 to 11. (10 marks)
Question 6:
In the video the more traditional financial market is explained where it is assumed that the central
bank is in control of the money supply, in other words, the exogenously determined money
approach. In our particular financial market in ECS2602 module, we follow the endogenously
determined money approach where expansionary monetary policy in South Africa entails a(n)
decrease in the interest (repo) rate in order to increasethe demand for goods in the economy and or
a(n) monetary demand in the level of output and income. (3)
Question 7:
Which one of the following statements is not a macroeconomic issue?
A. The unemployment rate in South Africa, according to the strict definition, was 28.18% in 2019.
B. The drought experienced in 2018/19 reduced many crop harvests and caused food price inflation
in South Africa.
C. Because of high inflation, it is expected that the interest rate will increase.
D. The drought experienced in 2018/19 reduced the total maise crop harvested and caused the price
of maise in South Africa to rise.
Statement: D(1)
Question 8:
Which one of the following statements is INCORRECT?
A. The main fiscal policy instrument is the budget, while the main policy variables are government
spending and taxation.
B. Assuming a balanced budget initially, the result of the implementation of expansionary fiscal
policy is a budget deficit.
2|Page
Whatsapp 0645167275
Whatsapp 0645167275
Whatsapp 0645167275
Whatsapp 0645167275
Whatsapp 0645167275
Whatsapp 0645167275
Assessment 1: Videos and Questions
Assessment 1 is based on learning units 1, 2 and 3 (60 marks)
How to complete Assignment 1:
Complete all 30 fill-in questions below in the spaces provided. Save the document as PDF
document. Upload the assignment on the ECS2602 module site on myUnisa as a PDF
document. No email submissions will be accepted.
Learning Unit 1 (18 marks)
Watch the following video and answer questions 1 to 5 based on the video. (8 marks)
When answering the questions, use the exact words as the presenter.
The Difference Between Fiscal and Monetary Policy (youtube.com)
Same video: different link: https://youtu.be/o0Yt6buayZ4?si=YdiNNhPB5sn_XSJC
Question 1:
1|Page
, According to the video, fiscal policy is the use of government spending and taxation to influence
the economy. (2)
Question 2:
Fiscal policy is a powerful tool. The key to its power is the budget (1)
Question 3:
In the video, there is a reference to supply-side economists, like Milton Friedman (1)
Question 4:
Monetary policy is the way the central bank influences the economy through the management of
the _interest rate and money supply (3)
Question 5:
The central bank system in the United States is called the The Federal Reserve System (1)
Work through LU 1 of the study guide and answer questions 6 to 11. (10 marks)
Question 6:
In the video the more traditional financial market is explained where it is assumed that the central
bank is in control of the money supply, in other words, the exogenously determined money
approach. In our particular financial market in ECS2602 module, we follow the endogenously
determined money approach where expansionary monetary policy in South Africa entails a(n)
decrease in the interest (repo) rate in order to increasethe demand for goods in the economy and or
a(n) monetary demand in the level of output and income. (3)
Question 7:
Which one of the following statements is not a macroeconomic issue?
A. The unemployment rate in South Africa, according to the strict definition, was 28.18% in 2019.
B. The drought experienced in 2018/19 reduced many crop harvests and caused food price inflation
in South Africa.
C. Because of high inflation, it is expected that the interest rate will increase.
D. The drought experienced in 2018/19 reduced the total maise crop harvested and caused the price
of maise in South Africa to rise.
Statement: D(1)
Question 8:
Which one of the following statements is INCORRECT?
A. The main fiscal policy instrument is the budget, while the main policy variables are government
spending and taxation.
B. Assuming a balanced budget initially, the result of the implementation of expansionary fiscal
policy is a budget deficit.
2|Page
