UNIVERSITY OF THE FREE STATE

UNIVERSITEIT VAN DIE VRYSTAAT

BLOEMFONTEIN CAMPUS/KAMPUS

EECF 62406/EFEC 62406

DEPARTMENT: ECONOMICS
DEPARTEMENT: EKONOMIE
CONTACT NUMBER/KONTAKNOMMER: 401 3406

EXAMINATION/EKSAMEN: Main end-of-year 2014

PAPER/VRAESTEL 1
ASSESSOR(S)/ 1. Mrs C. Campher/ Mrs L. Janse van Rensburg/ Mr. C. Mudzingiri
MODERATOR: 1. Dr N. Keyser
TIME/TYD: 2 hours

MARKS/PUNTE: 100

INSTRUCTIONS:
This paper consists of 4 questions on 8 pages.
Answer all the questions.
Read each question carefully and please write legibly.
For questions 2 to 4, show all necessary calculations and label all graphs clearly.
QUESTION 1
(20 x 2 = 40 marks)
Answer Question 1 in your answer book. Write the letter of your choice next to the
question number (e.g. 1.1 A or 1.1 B).
1.1

Answer the next question on the basis of the following information about a hypothetical
economy:
Full-time employed = 80
Part-time employed = 25
Unemployed = 15
Discouraged workers = 5
Members of underground economy = 6
Consumer Price Index = 110

The official unemployment rate in the above economy is:

A. 18.8%
B. 12.5%
C. 16.7%
D. 25%
1.2

Coins held in commercial banks are:

A. included in M1, but not in M2.
B. included in both M1 and M2.
C. included in M2, but not in M1.
D. Not part of the nations money supply

1.3

Answer the next question on the basis of the following information for a private closed
economy, where I is Investment, S is saving and Y is gross domestic product (GDP).
I = 80
S = -80 + 0.4Y

Refer to the above information. At equilibrium, savings will be:

A. R40
B. R120
C. R60
D. R80
Answer questions 1.4 and 1.5 on the basis of the following information for a private open
economy:
C = 40 + 0.8Y
I = 40
X = 20
M = 30
1.4

Refer to the above information. In this economy, international trade:

A. will cause GDP to increase.
B. will cause GDP to decline.
C. has no effect on GDP.
D. will cause inflation in this economy.

1.5

The value of autonomous total expenditure is:

A. 40
B. 70
C. 130
D. 0.8

1.6

Refer to the above diagram. Other things equal, a shift of the aggregate supply curve from
AS0 to AS1 might be caused by a(n):
A. increase in government regulation.
B. increase in aggregate demand.
C. increase in productivity.
D. decline in nominal wages.

1.7

Refer to the data in the table below.

Disposable income
Savings
R0
R 10
50
0
100
10
150
20
200
30

The marginal propensity to save (MPS) for this economy is:

A. 0.8
B. 0.75
C. 0.2
D. 0.25
1.8

Answer the next question on the basis of the following consumption and investment data
for a private closed economy.
C = 60 + 0.6Y
I = 30
The equilibrium level of income (Y) is:
A. 360
B. 225
C. 200
D. 135
3

1.9

The total demand for money will shift to the left as a result of:
A. a decline in nominal GDP.
B. an increase in the price level.
C. a change in the interest rate.
D. an increase in nominal GDP.

1.10 Assume that a bank initially has no excess reserves. If it receives R5 000 in cash from a
depositor and the bank finds that it can safely lend out R4 500, then the reserve
requirement must be:
A. 0%
B. 10%
C. 20%
D. 25%
1.11 Suppose nominal GDP in 1999 was R100 billion and in 2001 it was R260 billion. The
consumer price index in 1999 was 100 and in 2001 it was 180. Between 1999 and 2001 the
real GDP rose by:
A. 160%
B. 44%
C. 37%
D. 12%
1.12 If the exchange rate changes from R1 = 2 euros to R1 = 3 euros:
A. the Rand has appreciated in value.
B. the Rand has depreciated in value.
C. the Rand has neither appreciated nor depreciated, but the euro has appreciated in value.
D. S.A. exports to Europe will increase.
1.13 Answer the next question on the basis of the following table:
Interest rate

Transaction demand
for money

2%
4%
6%
8%
10%

R220
R220
R220
R220
R220

Speculative and
precautionary demand for
money (Asset demand)
R300
R280
R260
R240
R220

Money Supply

R460
R460
R460
R460
R460

An increase in the money supply of R20 billion will cause the equilibrium interest rate to:
A. fall by 4 percentage points.
B. fall by 2 percentage points.
C. rise by 4 percentage points.
D. rise by 2 percentage points.

1.14 If the reserve ratio is 15% and commercial bankers decide to hold additional excess
reserves equal to 5% of any newly acquired checkable deposits, then the relevant monetary
multiplier for the banking system will be:
A. 31/2.
B. 4.
C. 5.
D. 10.
1.15 A rightward shift in the aggregate demand curve:
A. can increase output, employment and the price level
B. will increase output but not the price level
C. should lead to an increase in potential income of the society.
D. is the result of a contractionary fiscal policy.
1.16 In which of the following sets of circumstances can we confidently expect inflation?
A. aggregate supply and aggregate demand both increase.
B. aggregate supply and aggregate demand both decrease.
C. aggregate supply decreases and aggregate demand increases.
D. aggregate supply increases and aggregate demand decreases.
1.17 Other things equal, a decrease in the real interest rate will:
A. expand investment and shift the AD curve to the left.
B. expand investment and shift the AD curve to the right.
C. reduce investment and shift the AD curve to the left.
D. reduce investment and shift the AD curve to the right.
1.18 Eckstein has lost her job in a Massachusetts textile plant because of import competition.
She intends to take a short course in electronics and move to California where she
anticipates that a new job opportunity will be available. We can say that Eckstein is faced
with:
A. secular unemployment.
B. cyclical unemployment.
C. structural unemployment.
D. frictional unemployment.
1.19 Complete the following statement: At above full-employment equilibrium, ________ real
GDP exceeds ________ real GDP and there is __________ gap. This can be caused by a
_________ shock to either aggregate demand or short-run aggregate supply.
A. actual, potential, an inflationary, positive
B. actual, potential, an inflationary, negative
C. potential, actual, a recessionary, positive
D. potential, actual, a recessionary, negative

1.20 The graph below illustrates the foreign exchange market for US$ and South African Rand
Rands per
dollar
8.34

S1
E1
S2

7.80
7.46

E2

D1
D2

100 300

500

Quantity of US$ (millions per day)

Which of the following could cause the dollar rand exchange rate to change as shown
above?
A. American goods become more popular in South Africa.
B. South African income rise, while U.S. incomes remain unchanged.
C. The U.S. price level rises, while the South African price level remains unchanged.
D. The U.S. real interest rate rises, while the South African real interest rate remains
unchanged.

QUESTION 2
2.1

(38 marks)

Use the following information and answer the questions that follow:

S = -1560 + 0,07Y
I = 1200
G = 1550
X = 890
M = 670
t = 0,18
2.1.1 Write down the Consumption function after tax has been taken into account and interpret
each of the values in the function.
(3)
2.1.2 What will happen to the current account of the Balance of Payments if X decreases to 540?
(2)
2.1.3 Calculate the equilibrium level of income and illustrate this graphically.
(5)
2.1.4 By making use of the multiplier, calculate the effect of an increase in Investment of 100 on
the equilibrium income.
(4)

2.2

Refer to the information in the table below for the country Tapei. The residents of Tapei
only buy 3 types of products, namely, clothes, meat and beer. Calculate the inflation rate
for Tapei for the 2000-2001. Show all calculations
(10)

Products
Clothes
Meat
Beer
2.3
2.3.1
2.3.2
2.3.3

2.4
2.4.1
2.4.2

Number bought
10
12
15

Prices 2000
R10
R15
R4

Prices 2001
R13
R17
R5

The South African government aims to slow spending growth over the next 3 years in an
attempt to reduce the budget deficit.
What is a budget deficit?
(1)
Indicate whether this action by the SA government is expansionary/contractionary and
discretionary/ automatic.
(2)
Illustrate graphically, the impact of the above action on the SA goods market.
(4)

Assume the inflation rate in South Africa is currently above the 6% upper end of the
South African Reserve Banks (SARB) target range.
Name any one of the three actions the SARB can implement to reduce the current
inflation rate.
(1)
Illustrate graphically, the impact of your action in 2.4.1 on (i) the money market and (ii)
the goods market in South Africa.
(6)

QUESTION 3
3.1

(12 marks)

Mr. Mboweni makes a deposit of R100 000 in his savings account. The cash reserve
requirement is 0.04 and the banks keep a voluntary 5% additional reserves. By making use
of the credit multiplier, determine how much additional money will be created in the
economy.
(3)

3.2

The rand remains weak and under-valued against major currencies especially the US
dollar.
3.2.1 What will be the impact of the above statement on SA exports and Total Expenditure (TE)?
(2)
3.2.2 Make use of a graph to illustrate your answer in 3.2.1 on the market for rands.
(3)
3.3

The Gini coefficient is one of the tools used for measuring income inequality. South Africa
has a Gini coefficient of 0.77 while Italy has a Gini coefficient of 0.35. Make use of one
graph to illustrate the Gini coefficients of South Africa and Italy. Clearly indicate which
line represents the data for South Africa and Italy respectively.
(4)

QUESTION 4

(10 marks)

4.1

Household consumption in South Africa is under strain from higher inflation and rising
interest rates.
4.1.1 Make use of the Keynesian Transmission Mechanism and AD/AS analysis to explain the
impact of the above statement on the real and monetary sectors of the economy. Include all
the necessary graphs in your answer.
(10)

TOTAL = 100

UNIVERSITY OF THE FREE STATE

UNIVERSITEIT VAN DIE VRYSTAAT
BLOEMFONTEIN CAMPUS/KAMPUS

EECF 62406/ EFEC 62406

DEPARTMENT: ECONOMICS
DEPARTEMENT: EKONOMIE
CONTACT NUMBER/KONTAKNOMMER: 401 3406

EXAMINATION/EKSAMEN: Hoof Jaareind 2014

PAPER/VRAESTEL 1
ASSESSOR(S)/ 1. Mrs C. Campher/ Mrs L. Janse van Rensburg/ Mr. C. Mudzingiri
MODERATOR: 1. Dr N. Keyser
TIME/TYD: 2 ure

MARKS/PUNTE: 100

INSTRUKSIES:
Hierdie vraestel bestaan uit 4 vrae op 8 bladsye.
Beantwoord al die vrae.
Lees elke vraag sorgvuldig deur en skryf asseblief leesbaar.
Vir vrae 2 tot 4, toon al die nodige berekeninge en benoem alle grafieke duidelik.
VRAAG 1
(20 x 2 = 40 punte)
Beantwoord vraag 1 in u antwoordboek. Skryf die letter van u keuse langs die
vraagnommer neer. (bv. 1.1 A of 1.1 B).
1.1

Beantwoord die volgende vraag op grond van die volgende inligting oor hipotetiese
ekonomie.
Voltyds in diens = 80
Deeltyds in diens = 25
Werkloos = 15
Ontmoedigde werkers = 5
Lede van die ondergrondse ekonomie = 6
Verbruikersprysindeks = 110

Die amptelike werkloosheidskoers in die bostaande ekonomie is:

E. 18.8%
F. 12.5%
G. 16.7%
H. 25%
1.3

Munte wat in kommersile banke gehou word, is:

E. ingesluit in M1, maar nie in M2 nie.
F. ingesluit in beide M1 en M2.
G. ingesluit in M2, maar nie in M1 nie.
H. Nie deel van die nasie se geldaanbod nie.

1.3

Beantwoord die volgende vraag op grond van die volgende inligting van private geslote
ekonomie, waar I Investering is, S spare is en Y bruto binnelandse produk (BBP) is.
I = 80
S = -80 + 0.4Y

Verwys na die bostaande inligting. By ewewig, sal spare __________ wees:

E. R40
F. R120
G. R60
H. R80
Beantwoord vrae 1.4 en 1.5 op grond van die inligting vir n private oop ekonomie:
C = 40 + 0.8Y
I = 40
X = 20
M = 30
1.6

Verwys na die bostaande inligting. In hierdie ekonomie sal internasionale handel:

E. BBP laat styg.
F. BBP laat daal.
G. geen effek op BBP h nie.
H. Inflasie in hierdie ekonomie veroorsaak.

1.7

Die waarde van outonome totale besteding is:

E. 40
F. 70
G. 130
H. 0.8

10

Prysvlak

AS = Totale Aanbod
AD = Totale Vraag

Reele Binnelandse uitset

1.6

Verwys na die bostaande diagram. Alles anders gelyk, skuif van die totale aanbodkurwe
van AS0 tot AS1 kan veroorsaak word deur :
A. styging in owerheidsregulering
E. styging in totale vraag.
F. styging in produktiwiteit.
G. daling in nominale lone.

1.13 Verwys na die data in die tabel hier onder.

Besteebare inkomste Spare
R0
R 10
50
0
100
10
150
20
200
30
Die marginale spaargeneigdheid (MPS) vir hierdie ekonomie is:
E. 0.8
F. 0.75
G. 0.2
H. 0.25
1.14 Beantwoord die volgende vraag op grond van die volgende verbruiks- en investeringsdata
vir private geslote ekonomie.
C = 60 + 0.6Y
I = 30
Die ewewigsvlak van inkomste (Y) is:
E. 360
F. 225
G. 200
H. 135
11

1.15 Die totale vraag na geld sal na links skuif as gevolg van:
E. daling in nominale BBP.
F. styging in die prysvlak.
G. verandering in die rentekoers.
H. styging in nominale BBP.
1.16 Veronderstel dat bank aanvanklik geen ekstra reserwes hou nie. Indien hy R5 000
kontant van deposent ontvang en die bank bevind dat hy R4 500 veilig kan uitleen, dan
moet die reserwevereiste __________wees.
E. 0%
F. 10%
G. 20%
H. 25%
1.17 Veronderstel nominale BBP in 1999 was R100 miljard en in 2001 was dit R260 miljard.
Die verbruikersprysindeks in 1999 was 100 en in 2001 was dit 180. Gedurende 1999 en
2001 het die rele BBP gestyg met:
E. 160%
F. 44%
G. 37%
H. 12%
1.18 Indien die wisselkoers verander van R1 = 2 euros na R1 = 3 euros, het:
E. die Rand ge-appresieer in waarde..
F. die Rand gedepresieer in waarde.
G. die Rand nie ge-appresieer of gedepressieer nie, maar die euro het ge-appresieer in
waarde.
H. S.A. uitvoere na Europa sal styg.
1.13 Beantwoord die volgende vraag op grond van die volgende tabel:
Rentekoers
2%
4%
6%
8%
10%

Transaksievraag na
geld
R220
R220
R220
R220
R220

Spekulasie-en voorsorg
vraag na geld (Batevraag)
R300
R280
R260
R240
R220

Geldaanbod
R460
R460
R460
R460
R460

Styging in die geldaanbod van R20 miljard sal veroorsaak dat die ewewigsrentekoers:
E. daal met 4 persentasiepunte.
F. daal met 2 persentasiepunte.
G. styg met 4 persentasiepunte.
H. styg met 2 persentasiepunte.

12

1.14 Indien die reserweverhouding 15% is en kommersiele bankiere besluit om addisionele

(ekstra) reserwes te hou gelyk aan 5% van enige nuwe depositos dan sal die relevante
waarde van die monetre vermenigvuldiger vir die bankstelsel, ________ wees.
A. 31/2.
B. 4.
C. 5.
D. 10.
1.18 Regswaartse skuif van die totale vraagkurwe:
E. kan uitsette, indiensnames en prysvlakke verhoog.
F. kan uitset verhoog maar nie die prysvlak nie.
G. kan tot in styging in potensiele inkomste van die gemeenskap lei.
H. is die gevolg van beperkende fiskale beleid.
1.19 In watter van die volgende stelle omstandighede kan ons met vertroue inflasie verwag?
E. beide totale aanbod en totale vraag styg.
F. beide totale aanbod en totale vraag daal.
G. totale aanbod daal en totale vraag styg.
H. totale aanbod styg en totale vraag daal..
1.20 Alles anders gelyk, daling in die rele rentekoers sal:
E.investering uitbrei en die AD (totale vraagkurwe) na links skuif.
F. investering uitbrei en die AD (totale vraagkurwe) na regs skuif.
G. investering verminder en die AD (totale vraagkurwe) na links skuif.
H. investering verminder en die AD (totale vraagkurwe) na regs skuif.
1.18 Eckstein het haar werk in Massachusetts tekstielaanleg verloor weens
invoermededinging. Sy beoog om kort kursus in elektornika te doen en dan na California
te trek waar sy antisipeer dat nuwe werksgeleentheid beskikbaar sal wees. Ons kan s dat
Eckstein _____________ in die gesig staar.
A. sekulre werkloosheid.
B. sikliese werkloosheid.
C. strukturele werkloosheid.
D. wrywingswerkloosheid.
1.19 Voltooi die volgende stelling: Teen hor as volle indiensname ewewig is, ________ rele
BBP meer as ________ rele BBP en daar is __________ gaping. Dit kan veroorsaak word deur
_________ skok aan f totale vraag f korttermyn totale aanbod.
E. werklike, potensile, inflasionre, positiewe
F. werklike, potensile, inflasionre, negatiewe
G. potensile, werklike, reversionre, positiewe
H. potensile, werklike, reversionre, negatiewe

13

1.20 Die onderstaande grafiek illustreer die buitelandse valutamarkte vir VSA $ en SuidAfrikaanse Rand.
Rand per
doller
8.34

D = Vraag
S = Aanbod
E = Ewewig

S1
E1
S2

7.80
7.46

E2

D1
D2

100 300

500

Hoeveelheid VSA $ (miljoen per dag)

Watter van die volgende sal die dollar-rand wisselkoers so verander soos hierbo aangedui?
E. Amerikaanse goedere word meer gewild in Suid-Afrika.
F. Suid-Afrikaanse inkomste styg terwyl VSA-inkomste dieselfde bly.
G. Die VSA prysvlak styg terwyl die Suid-Afrikaanse prysvlak onveranderd bly.
H. Die VSA rentekoers styg, terwyl die Suid-Afrikaanse rele rentekoers onveranderd bly.

14

VRAAG 2
2.1

(38 punte)

Gebruik die volgende inligting en beantwoord die vrae wat volg.

S = -1560 + 0,07Y
I = 1200
G = 1550
X = 890
M = 670
t = 0,18
2.1.1 Skryf die verbruiksfunksie nadat belasting in ag geneem is neer en interpreteer elkeen van
die waardes van die funksie.
(3)
2.1.2 Wat sal met die lopende rekening van die Betalingsbalans gebeur indien X daal tot 540?
(2)
(4)
2.1.3 Bereken die ewewigsvlak van inkomste en illustreer dit grafies.
2.1.4 Deur gebruik te maak van die vermenigvuldiger, bereken die effek wat styging van 100
(4)
in Investering op die ewewigsinkomste sal h.
2.1.5 Illustreer op u grafiek soos getrek in 2.1.3, hoe die styging in Investering (2.1.4) die grootte
van die ekonomie sal affekteer.
(1)

2.5

Verwys na die inligting van land, Tapei, in die tabel hieronder. Die inwoners van Tapei
koop slegs 3 tipes produkte aan, naamlik klere, vleis en bier. Bereken die inflasiekoers vir
Tapei vir 2000-2001. Toon alle berekeninge.
(10)

Produkte
Klere
Vleis
Bier

2.6
2.3.1
2.3.2
2.3.3

2.7
2.4.1
2.4.2

Aantal gekoop
10
12
15

Pryse 2000
R10
R15
R4

Pryse 2001
R13
R17
R5

Die Suid-Afrikaanse regering poog om groei in besteding te beperk oor die volgende 3
jaar in poging om die begrotingstekort te verminder.
Wat is begrotingstekort?
(1)
Dui aan of hierdie aksie deur die SA regering ekspansionisties/beperkend en
diskresionr/outomaties is.
(2)
Illustreer grafies die impak van die bogenoemde aksie op die SA goederemark. (4)
Veronderstel die inflasiekoers in Suid-Afrika is tans bokant die 6% boonste perk van die
Suid-Afrikaanse Reserwebank (SARB) se teikenreeks.
Noem enige van die drie aksies wat die SARB kan implementeer om die huidige
inflasiekoers te verminder.
(1)
Illustreer grafies die impak van u aksie in 2.4.1 op (i) die geldmark, en (ii) die
goederemark in Suid-Afrika
(6)

15

VRAAG 3
3.1

(12 punte)

Mnr. Mboweni deponeer R100 000 in sy spaarrekening. Die kontant-reserwevereiste is

0.04 en banke hou vrywillig addisionele 5% reserwes. Deur gebruik te maak van die
kredietvermenigvuldiger, bepaal hoeveel addisionele geld in die ekonomie geskep sal
word.
(3)

Die rand bly swak en onderwaardeer teen die grootste geldeenhede en veral die VSA
doller.
3.2.1 Wat sal die impak van die bostaande stelling op Suid-Afrikaanse uitvoere en totale
besteding (TE) wees?
(2)
3.2.2 Maak gebruik van grafiek om u antwoord in 3.2.1 op die mark vir rand te illustreer.
(3)
3.2

3.4

Die Gini-koeffisint is een van die instrumente wat gebruik word om inkomste
ongelykheid te meet. Suid-Afrika het Gini-koeffisint van 0.77 terwyl Itali Ginikoeffisint van 0.35 het. Maak gebruik van een grafiek om die Gini-koeffisint van SuidAfrika en Itali te illustreer. Toon duidelik aan watter lyn onderskeidelik die data van SuidAfrika en Itali aandui.
(4)

VRAAG 4

(10 punte)

Huishoudelike verbruik in Suid-Afrika is onder spanning wees hor inflasie en stygende

rentekoerse.
4.1.1 Maak gebruik van die Keynesiaanse Oordragmeganisme en die AD/AS (totale vraag en
totale aanbod) analise om die impak van die bostaande stelling op die rele - en monetre
sektore van die ekonomie te verduidelik. Sluit al die nodige grafieke by u antwoord in.
(10)
4.1

TOTAAL = 100

16

UNIVERSITY OF THE FREE STATE

UNIVERSITEIT VAN DIE VRYSTAAT
BLOEMFONTEIN CAMPUS/KAMPUS

EECF 62406
DEPARTMENT: ECONOMICS
DEPARTEMENT: EKONOMIE
CONTACT NUMBER/KONTAKNOMMER: 401 3406

EXAMINATION/EKSAMEN: Main end-of-year 2014

PAPER/VRAESTEL 1
MEMORANDUM
ASSESSOR(S)/ 1. Mrs C. Campher/ Mrs L. Janse van Rensburg/ Mr. C. Mudzingiri
MODERATOR: 1. Dr N. Keyser
TIME/TYD: 3 hours
QUESTION 1

MARKS/PUNTE: 100
(20 x 2 = 40 marks)

1.1 B, 1.2 A; 1.3 D; 1.4 B; 1.5 B; 1.6 A; 1.7 C; 1.8 B; 1.9 A; 1.10 B; 1.11 B; 1.12 A; 1.13 B;
1.14 C; 1.15 A; 1.16 C; 1.17 B; 1.18 D; 1.19 A; 1.20 C

QUESTION 2
2.1.1

(38 marks)

= 1560 + 0.93 (1-.018)Y

= 1560 + 0.93(0.82)Y
= 1560 + 0.7626Y
1560 = Autonomous spending level of consumption spending when Y= 0
0.7626 = MPC- if Y increases with R1, Consumption will increase by 72c (72% of
R1)
[3]

2.1.2 Current account will go into a deficit of 130; imports will exceed exports.

[2]

17

2.1.3

TE = 4530 + 0.7626Y
Y = 4530 + 0.7626Y
0.2374Y = 4530
Y = R19081,71861 OR R19 081,72

TE = Y
TE = 4530+0.7626Y

TE

4530

19081,72

2.1.4

GPD/Y

[5]

Multiplier = 1/1 mpc = 1/ 1- 0.7626 = 1/0.2374 = 4.212299915

Change in Ye = Change in TE x multiplier

= 100 x 4.212299915
= 421. 2299915

Equilibrium will increase by R421.229915

OR will increase to R19 502, 9486

[4]

2.2
The total spending for 2000 (base year)/ Totaal spandeer per jaar (basis jaar). (2)
Clothes / Klere
Meat/ Kos
Beer/ Bier
Total

10 x 10 = R100
12 x 15 = R180
15 x 4 = R60
R100 + R180 + R60 = R340

18

The weight of spending on each item/ Gewig per item.

(2)

Clothing/ Klere = 100/340 = 0.294117647

= 180/340 = 0.529411764
Meat/ Vleis
Beer/ Bier
= 60/ 340 = 0.176470588
Specific price index for 2000 to 2001/ Spesifieke prysindeks vir 2000 tot 2001

(2)

Clothing/ Klere = 13/10 x 100 = 130

Meat/ Vleis = 17/15 x 100 = 113.3333333
Beer/ Bier = 5/4 x 100 = 125
The composite price index and inflation rate for 2001/ Saamgestelde prysindex en
inflasiekoers vir 2001.

(4)

Composite price index =

130 x 0.294117647 = 38.23529411

113.3333 x 0.529411764 = 59.99998227
125 x 0.176470588 = 22.0588235
CPI = 38.23529411 + 59.99998227 + 22.0588235 = 120.2940998

Inflation rate = [(120.2940998 100)/100] x 100 = 20.2941% or 20.29%

2.3.1 When government spending exceeds revenue (taxes).

2.3.2 Contractionary and discretionary

[1]
[2]

2.3.3
AS

Price
level

AD0
AD1
GDP/ output/ Y

mark each for correctly labelled axes!

[4]

19

2.4.1

increase the repo rate OR

increase the reserve requirement OR
sell government bonds

[1]

2.4.2
Money market
MS1

Interest
rate

Goods market
MS0

AS

Price
level

MD

AD1

Q of
money

mark each for correctly labelled axes!

QUESTION 3

AD0

GDP/ output/ Y

[6]

(12 marks)

3.1 multiplier = 1/ res req + additional reserves = 1/ 0.09 = 11.11

Money created = Deposit x multiplier = 100 000 x 11.11 = R1 111 111.11
3.2.1 SA exports will increase

and TE will increase

[3]
[2]

20

3.2.2

S of Rands
$ per
R

D2 for Rands
D1 for Rands

Quantity of R

mark each for correctly labelled axes!

3.3

21

QUESTION 4
4.1.1

(10 marks)

in C
Real sector: decrease in TE in AD in stock surplus in the goods
market in prices in production in Y
Monetary sector: in Md surplus in money market downward pressure on
interest rates interest rates
AS

Price
level

AD0
AD1
GDP/ output/ Y
MS
TE
TE0

TE1

MD0
MD1
GDP
/Y

Q of
Money

4.1.1 Or in Md
Monetary Sector: in Md in i
Real sector: I TE in AD in stock surplus in the goods market
in prices in production in Y

22

UNIVERSITY OF THE FREE STATE

UNIVERSITEIT VAN DIE VRYSTAAT
BLOEMFONTEIN CAMPUS/KAMPUS

EECF 62406/ EFEC 62406

DEPARTMENT: ECONOMICS
DEPARTEMENT: EKONOMIE
CONTACT NUMBER/KONTAKNOMMER: 401 3406

EXAMINATION/EKSAMEN: Additional Year end 2014

PAPER/VRAESTEL 1
ASSESSOR(S)/ 1. Mrs C. Campher/ Mrs L. Janse van Rensburg/ Mr. C. Mudzingiri
MODERATOR: 1. Dr N. Keyser
TIME/TYD: 2 hours

MARKS/PUNTE: 100

CONTACT NUMBER/KONTAKNOMMER: 401 3406

INSTRUCTIONS
EXAMINATION/EKSAMEN: Main end-of-year 2014

This paper consists of 4 questions.

PAPER/VRAESTEL 1

Answer all the questions.

Read the questions carefully and please write legibly.

Graphs should be clearly drawn and labelled

Show all calculations where necessary and all calculations should be rounded off to 2
decimal places.

QUESTION 1
(20x2 =40marks )
Answer Question 1 in your answer book. Write the letter of your choice next to the
question number (e.g. 1.1 A or 1.1 B).

23

1.1 Given the scenario shown in the graph below, what would you recommend the Governor
of the South African Reserve Bank do so that she meets her mandate of maintaining price
stability?
CPI

ASlr
ASsr

AD
A.
B.
C.
D.

Lower the bank rate and buy securities.

Raise the bank rate and buy securities.
Lower the bank rate and sell securities.
Raise the bank rate and sell securities.

GDP/Output

1.2 Based on the circular flow model, money flows from households to businesses in
A. the factor market.
B. both the factor and product market.
C. the product market.
D. neither the factor nor product market.
1.3 Suppose hypothetically, the consumer price index (CPI) was 150 in Year 1 and was 180 in
Year 2. What would be the inflation rate for this period?
A. 12%
B. 16.7%
C. 20%
D. 30%

24

1.4 Real income for a given year would be less than nominal income in that year if:
A. the consumer price index was less than 100 in that year.
B. nominal income in that year was greater than nominal income in the previous year.
C. nominal income in that year was less than nominal income in the previous year.
D. the consumer price index was greater than 100 in that year.
1.5

Suppose workers become pessimistic about their future employment, which causes them
to save more and spend less. If the economy is on the intermediate range of the aggregate
supply curve, then:
A. both real GDP and the price level will fall.
B. real GDP will fall and the price level will rise.
C. real GDP will rise and the price level will fall.
D. both real GDP and the price level will rise.

1.6 The Department of Commerce sums the payments made to resources to arrive at GDP in
the form of wages, rents, interest, profits, indirect taxes, and depreciation. This method of
deriving GDP is called the:
A. opportunity cost approach.
B. income approach
C. expenditure approach.
D. monetarist approach.
1.7 Which of the following is true?
A. Frictional unemployment implies a lack of available jobs.
B. During a recession, cyclical unemployment will be low.
C. When an economy is at full employment, actual unemployment will be less than the
natural rate of unemployment.
D. When actual GDP equals potential GDP, the actual unemployment rate will equal the
economy's natural rate of unemployment.
Use the following information to answer question below
Assume that Steve received R 1 500.00 from his grandmother in Musina and decided to
deposit the money into his bank account at Kovsies Bank. The following table illustrates the
money creation process due to Steves deposit.
Commercial Acquired
Required
Excess
Amount Banks
Bank
Reserves and Reserves (R)
Reserves (R)
Can Loan Out
Deposits (R)
(R)
Kovsies Bank 1 500.00
225.00
1 275.00
1 275.00
NedBank
1 275.00
191.25
1 083.75
1 083.75
StanBank
1 083.75
162.56
921.19
921.19
FNB
921.19
138.18
783.01
783.01
Capitec
783.01
117.45
665.56
665.56
Remaining
4 437.05
665.56
771.50
3 771.50
transactions

25

1.8 If the banks are fully loaned out, the monetary multiplier is ____ and the maximum value of
additional deposits that can be created from the initial R1 500 deposit is ____.
A.
B.
C.
D.

0.15; R 8 500.00
0.15; R 10 000.00
0.15; R 1 673.43
6.67; R 8 500.00

Use the information to answer the question below. A bank balance sheet appears as follows:
Assets
Liabilities
Reserves
R130
Other non-current R20
assets

Owners equity
Deposits

R100
R50

1.9 The required reserve ratio is 20%. How much can this bank lend out at present, and how
much money can the banking system create as a result assuming that the banking system
will lend as much as it is able to lend? I.e. assume that 100% of the value of any loan
granted is withdrawn and is used for payments which form new deposits and then new
loans etc.
A. Lend: R110 ; Create: R550
B. Lend: R120 ; Create: R650
C. Lend: R80 ; Create: R160
D. Lend: R120 ; Create: R600
1.10 The combination of fiscal policies that would reinforce each other and be most
contractionary would be a(n):
A. increase in government spending and taxes.
B. decrease in government spending and taxes.
C. decrease in government spending and an increase in taxes.
D. increase in government spending and a decrease in taxes.
1.11 Suppose that an economy experiences a recession and government increases its spending
by R100 billion and increases lump sum taxes by R100 billion:
A.
B.
C.
D.

This has no impact on growth in the economy.

This will result in economic growth in the economy
The impact on growth is ambiguous
An increase in growth can only be guaranteed if government expenditure is more than
taxes.

26

The table shows the GINI coefficient by population group

Population group
GINI Coefficient
Blacks
0.54
Colored
0.52
Indian/Asian
0.49
White
0.39
Republic of South Africa
0.64
1.12 A GINI coefficient of 0.54 for the Black African racial group compared to all other races
in the table above shows that
A.
B.
C.
D.

All Black African people are very rich

Black African people are many
There are higher income differences amongst Black Africans
There are lower income differences amongst Black Africans

1.13 The US dollar exchange rate decreased from 7.24 South African Rand in 2009 to 7.05
South African Rand in 2010, and it increased from 108.15 Japanese yen in 2009 to 110.11
Japanese yen in 2010. From this information:
A.
B.
C.
D.

the US dollar depreciated against South African Rand

the US dollar appreciated against South African Rand
the US dollar deprecated against Japanese yen
the Japanese yen appreciated against the South African Rand

The table below shows a summary of the transactions that took place between the individuals,
firms and government units of country ABC and those of all other nations during the year 2013.
Item
Rand (billion)
Merchandise exports
330
Merchandise imports
300
Service receipts
100
Net direct investment
32.4
Net portfolio investment
68
Other investments
359
Payments for services
134
Unrecorded transactions
21
1.14 What are the respective current account balance and the (change in gold and other foreign
reserves) in the table above?
A. -4.4 billion; 459.4 Billion
B. -4 billion; 459.4 billion
C. -4 billion; 476.4 billion
D. -4billion; 21.4 billion

27

1.15 Which of the following would cause the South African Rand to depreciate against the Japanese yen?
A. Greater popularity of South African exports in Japan.
B. A higher price level in Japan.
C. Higher real interest rates in the South Africa.
D. Higher incomes in the South Africa.

Unemployment categories
Category
Workers
Frictional unemployment
250
Structural unemployment
350
Cyclical unemployment
600
Discouraged workers
400
Underemployment
450
1.16 According to the data in the Figure above and assuming the total number of workers is
8,400, the strict unemployment rate is approximately:
A. 14%
B. 15%
C. 16%
D. 19%
1.17 Suppose there are 10 million part-time workers and 90 million full-time workers in an
economy. Five million of the part-time workers switch to full-time work. As a result:
A. the official unemployment rate will fall.
B. the official unemployment rate will rise.
C. the official unemployment rate will remain unchanged.
D. the size of the labour force will increase.
1.18 In a closed economy, for every one rand that the households receive, 80 cents are
consumed and 20 cents are saved. Suppose the government introduces an income tax rate of
10% , by how much will GDP increase if autonomous expenditure increases by R10
million?
A. R50million
B. R25.74million
C. R35.71million
D. R55.56million

28

1.19 The graph below illustrates the Aggregate expenditure in the Keynesian Model
450

Aggregate
expenditure

AE2
AE1

8 000
e

7 800
8 000

9 000

Income(Y)

If government increases its spending such that autonomous expenditure increases from 7
800 to 8 000 and the income increases to 9 000, then the size of the multiplier is equal to
A. 10
B. 5
C. 0.2
D. 0.25
1.20 A closed and private economy has its expenditure information presented in the figure
below:
450
Consumption,
Investment

2 000

Consumption

Investment

5 000
At equilibrium, income equals . and savings Income(Y)
equal.
A. R5 000; R0
B. R6 000; R200
C. R10 000; R4 000
D. R10 000; R2 000

29

QUESTION 2
The table below shows some data for the country called Land of Milk
information in the table to answer questions 2.1, 2.2 and 2.3
Year
Price of milk in Quantity of milk Price of Bread in
rands
(litres)
rands
2012
10
1000
7
2013
15
2000
9
2014
20
1500
11

(21 marks)
and Bread. Use the
Quantity
of
bread loaves
500
900
900

2.1 Assume the consumer basket of the inhabitants of the Land of Milk and Bread is made up of
milk and bread only; calculate the inflation rate for 20132014, using 2013 as your base year.
(10)
Furthermore, assume that Land of Milk and Bread produces only milk and bread
2.2 Calculate the nominal gross domestic product for the country for 2014.
2.3 By using 2012 as your base year, calculate the GDP deflator for 2014.

(2)
(3)

2.4 In September 2013 there were 30 413 000 persons aged 15 65 years comprising the labour
market, of which:
13 234 000 persons were employed
3 944 000 persons were unemployed (official definition)
13 235 000 persons were not economically active
17 178 000 persons were in the labour force
3 425 000 persons were discouraged work-seekers.
2.4.1
2.4.2
2.4.3

Calculate the official labour force participation rate using the information above. (2)
By making use of the information above calculate the unemployment rate according to
the expanded definition.
(2)
Name the type of unemployment that is absent when an economy is at full employment.
(1)

2.5 In Bloemfontein ten families receive incomes of R1000 each and the other ten families
receive incomes of R200. In Bethlehem ten families receive incomes of R2000 each and the
other ten families receive incomes of R220. In which community is the distribution of
income more unequal?
(1)

QUESTION 3

(13 marks)

3.1 Use the following information and answer the questions that follow.
C = 1800 + 0,91Yd
I = 1200
G = 1500
X = 800
M = 600+ 0.1Y
T = 100 + 0,2Y
30

3.1.1
3.1.2
3.1.3
3.1.4
3.1.5

Write down the consumption function after tax has been taken into account.
Write down the net export function.
Use the information in 3.1 above to calculate the equilibrium level of income.
What is level of income at which the government budget will be balanced?
Using the information above, calculate the expenditure multiplier

QUESTION 4

(3)
(2)
(3)
(2)
(3)

(26 marks)

4.1 In an attempt to bring stability/confidence back to the banking sector, the South African
Reserve Bank (SARB) is most likely going to increase the required reserve ratio. Using well
labelled graphs, illustrate and briefly explain the impact of the action in the following
markets:
4.1.1 The money market
(4)
4.1.2 The goods market
(4)
4.2 Consider the South African rand/ USA dollar exchange rate, and focus on the market for
dollars. Using the demand and supply curves, explain whether the dollar would appreciate or
depreciate against the rand, and whether that rand would appreciate or depreciate against the
dollar in the following scenarios. Hint: Assume USA is the only trading partner of South
Africa
4.2.1 South Africans tastes and preferences for US goods increase.
(4)
4.2.2 The Buy American (USA) policy implemented by President Obama takes shape.
(4)
4.3 Make use of the Keynesian transmission mechanism and AD/AS analysis to illustrate and
explain the effect of a decision by the Reserve Bank to buy government bonds from South
African citizens, on the monetary and real sectors of the economy. Make use of all the necessary
graphs in your answer.
(10)
TOTAL = 100

31

UNIVERSITY OF THE FREE STATE

UNIVERSITEIT VAN DIE VRYSTAAT
BLOEMFONTEIN CAMPUS/KAMPUS

EECF 62406/ EFEC 62406

DEPARTMENT: ECONOMICS
DEPARTEMENT: EKONOMIE
CONTACT NUMBER/KONTAKNOMMER: 401 3406

EXAMINATION/EKSAMEN: Bykomende Jaareind 2014

PAPER/VRAESTEL 1
ASSESSOR(S)/ 1. Mrs C. Campher/ Mrs L. Janse van Rensburg/ Mr. C. Mudzingiri
MODERATOR: 1. Dr N. Keyser
TIME/TYD: 2 ure

MARKS/PUNTE: 100

CONTACT NUMBER/KONTAKNOMMER: 401 3406

EXAMINATION/EKSAMEN: Main end-of-year 2014

PAPER/VRAESTEL 1
INSTRUKSIES

Hierdie vraestel bestaan uit 4 vrae.

Beantwoord al die vrae.

Lees die vrae aandagtig deur en skryf leesbaar.

Grafieke moet duidelik geteken en benoem word.

Toon al die berekeninge waar nodig en alle berekeninge moet afgerond word tot 2
desimale plekke.

32

VRAAG 1

(20x2 = 40 punte)

Beantwoord Vraag 1 in jou antwoord boek. Skryf net die letter van jou keuse teenoor die
vraag nommer (e.g. 1.1 A of 1.1 B).
1.1 Gegewe scenario soos deur die onderstaande grafiek gewys, wat sou jy aan die
Goewerneur van die Suid Afrikaanse Reserwe Bank aanbeveel om te doen sodat sy haar
mandaat van handhawing van prysstabiliteit bereik?
AS
(langtermyn)

VPI
VPI
V

AS
(korttermyn)

AD

BBP/
Uitsette

A.
B.
C.
D.

Verlaag die bankkoers en koop sekuriteite.

Verhoog die bankkoers en koop sekuriteite.
Verlaag die bankkoers en verkoop sekuriteite.
Verhoog die bankkoers en verkoop sekuriteite.

1.2 Op grond van die sirkulre vloei model, geld vloei van die huishouding na besighede in
A. die faktor mark.
B. beide die faktor- en die produkte markte.
C. die produkte mark.
D. nie die faktor of die produkte mark nie.
1.3 Veronderstel hipoteties, dat die verbruikersprys indeks (VPI) in Jaar 1: 150 was, en in Jaar
2: 180 was. Wat sal die inflasiekoers vir die periode wees?
A. 12%
B. 16.7%
C. 20%
D. 30%

33

1.4 Rele inkomste vir jaar sal minder as die nominale inkomste in daardie jaar wees as:
A. die verbruikersprysindeks minder as 100 in daardie jaar was.
B. nominale inkomste in die jaar groter as die nominale inkomste in die vorige jaar was.
C. nominale inkomste in die jaar minder as die nominale inkomste in die vorige jaar was.
D. die verbruikersprysindeks meer as 100 in daardie jaar was.
1.5 Veronderstel werkers raak pessimisties oor hul toekomstige indiensname, wat veroorsaak
dat hulle meer spaar en minder spandeer. As die ekonomie op die intermedire reeks van
die totale aanbod kurwe is, dan sal:
A. beide rele BBP en die prysvlak afneem.
B. rele BBP sal afneem en die prysvlak sal toeneem.
C. rele BBP sal toeneem en die prysvlak sal afneem.
D. beide rele BBP en die prysvlak toeneem.
1.6 Die Departement van Handel tel die betalings wat gemaak word aan hulpbronne wat in
BBP kom in die vorm van lone, rente, winste, indirekte belasting, en waardevermindering
op. Hierdie metode van afleiding van BBP word genoem die:
A. geleentheidskoste benadering.
B. inkomste benadering.
C. bestedings benadering.
D. Monetaristiese benadering.
1.7 Watter van die volgende is waar?
A. Wrywingswerkloosheid impliseer tekort aan beskikbare werk.
B. Gedurende resessie, sal sikliese werkloosheid laag wees.
C. Indien die ekonomie by volle indiensname is, sal die werklike werkloosheid minder as
die natuurlike koers van werkloosheid wees.
D. Wanneer werklike BBP gelyk is aan potensile BBP, sal die werklike werkloosheidskoers
gelyk wees aan die ekonomie se natuurlike koers van werkloosheid.
Gebruik die volgende inligting om die onderstaande vraag te beantwoord
Veronderstel dat Steve R 1 500.00 van sy ouma in Musina ontvang het en besluit het om sy geld
in sy bankrekening by Kovsie Bank te deponeer. Die volgende tabel illustreer die
geldskeppingsproses weens Steve se deposito.
Kommersile
Verkrygde
Vereiste
Oortollige
Bedrag
wat
Bank
Reserwes
en Reserwes (R)
Reserwes (R)
Banke
kan
Depositos (R)
uitleen (R)
Kovsies Bank
1 500.00
225.00
1 275.00
1 275.00
Nedbank
1 275.00
191.25
1 083.75
1 083.75
Standard Bank 1 083.75
162.56
921.19
921.19
FNB
921.19
138.18
783.01
783.01
Capitec
783.01
117.45
665.56
665.56
Oorblywende
4 437.05
665.56
771.50
3 771.50
transaksies

34

1.8 Indien die banke ten volle uitgeleen is, sal die monitre/geld vermenigvuldiger
_______wees en die maksimum waarde van die addisionele depositos wat deur die
aanvanklike R1500 deposito geskep is ______ wees.

A.
B.
C.
D.

0.15; R 8 500.00
0.15; R 10 000.00
0.15; R 1 673.43
6.67; R 8 500.00

Gebruik die inligting om die onderstaande vraag te beantwoord. Bankbalansblad verskyn

as volg:
Bates
Laste
Reserwes
Ander
bedryfsbates

R130
nie- R20

Eienaarsbelang
Depositos

R100
R50

1.9 Die reserwevereiste-koers is 20%. Hoeveel kan die bank tans uitleen, en hoeveel geld kan
die bank stelsel gevolglik skep met die veronderstelling dat die bank stelsel so veel as wat
hy kan sal uitleen? M.a.w. neem aan dat 100% van die waarde van enige lening wat
toegestaan, onttrek en gebruik word vir die betalings wat nuwe deposito en dan nuwe
lenings ens. vorm.
A. Leen: R110 ; Skep: R550
B. Leen: R120 ; Skep: R650
C. Leen: R80 ; Skep: R160
D. Leen: R120 ; Skep: R600
1.10 Die kombinasie van fiskale beleid wat mekaar sal versterk en wat die mees beperkend sal
wees, is :
A. toename in staatsbesteding en belasting.
B. afname in staatsbesteding en belasting.
C. afname in staatsbesteding en toename in belasting.
D. toename in staatsbesteding en afname in belasting.
1.11 Veronderstel dat die ekonomie resessie ervaar en die regering verhoog staatsbesteding
met R100 miljard en verhoog enkelbedrag (lump sum) belasting met R100 miljard:
A. Dit het geen inpak op die groei in die ekonomie nie.
B. Dit sal ekonomiese groei in die ekonomie tot gevolg h.
C. Die impak op groei is dubbelsinnig.
D. Verhoging in ekonomiese groei kan slegs gewaarborg word indien die staatsbesteding
meer as die belasting is.

35

Die tabel toon die GINI koffisint per populasie groep

GINI koffisint
Populasie groep
Swartes
0.54
Kleurlinge
0.52
Indies/Asiaties
0.49
Blankes
0.39
Republiek van Suid-Afrika
0.64
1.12 GINI koffisint van 0.54 vir die Swart Afrikane rasgroep, vergeleke met al die ander
rasse in die bostaande tabel, dui daarop dat:
A. Alle Swart Afrika mense baie ryk is.
B. Swart Afrikane mense baie is.
C. Daar hor inkomste verskil tussen Swart Afrikane is.
D. Daar laer inkomste verskil tussen Swart Afrikane is.
1.13 Die VS dollar wisselkoers het van 7.24 Suid-Afrikaanse Rand in 2009 tot 7.05 SuidAfrikaanse Rand in 2010 afgeneem, en dit het vanaf 108.15 Japannese yen in 2009 tot
110.11 Japannese yen in 2010 verhoog. Vanaf die inligting het:
A. die VS dollar verswak teenoor die Suid-Afrikaanse Rand.
B. die VS dollar versterk teenoor die Suid-Afrikaanse Rand.
C. die VS dollar verswak teenoor die Japannese yen.
D. die Japannese yen versterk teenoor die Suid-Afrikaanse Rand.
Die onderstaande tabel toon opsomming van die transaksies wat plaasgevind het tussen
individue, besighede en die regerings eenhede in land ABC en daardie met al die ander lande
gedurende die jaar 2013.
Item
Uitvoergoedere
Invoergoedere
Dienste-ontvangstes
Netto direkte investering
Netto portefeulje investering
Ander investering
Betaling vir dienste
Onaangetekende transaksies

Rand (miljard)
330
300
100
32.4
68
359
134
21

1.14 Wat is die onderskeie lopende rekeningbalans en die verandering in goud en ander
buitelandse reserwes in die bostaande tabel?
A. -4.4 miljard; 459.4 miljard
B. -4 miljard; 459.4 miljard
C. -4 miljard; 476.4 miljard
D. -4miljard; 21.4 miljard
36

1.15 Watter van die volgende sal veroorsaak dat die Suid-Afrikaanse Rand teenoor die
Japannese Yen verswak?
A. Groter gewildheid van Suid-Afrikaanse uitvoere in Japan.
B. Hor prysvlak in Japan.
C. Hor rele rentekoers in Suid-Afrika.
D. Hor inkomstes in Suid-Afrika.
Werkloosheid kategorie
Kategorie
Werkers
Wrywingswerkloosheid
250
Strukturele werkloosheid
350
Sikliese werkloosheid
600
Ontmoedigde werkers
400
Werkloosheid
450
1.16 Volgens die data in die bostaande figuur en met die veronderstelling dat die totale
hoeveelheid werkers 8,400 is, is die streng werkloosheidkoers ongeveer:
A. 14%
B. 15%
C. 16%
D. 19%
1.17 Veronderstel dat daar 100 miljoen deeltydse werkers en 90 miljoen voltydse werkers in
ekonomie is. Vyf miljoen van die deeltydse werkers skakel oor na voltydse werk.
Gevolglik:
A. sal die amptelike werkloosheidskoers afneem.
B. sal die amptelike werkloosheidskoers toeneem.
C. sal die amptelike werkloosheidkoers onveranderd bly.
D. sal die grootte van die arbeidsmag toeneem.
1.18 In geslote ekonomie, vir elke een rand wat die huishoudings ontvang, word 80 sent
verbruik en 20 sent word gespaar. Gestel die regering stel inkomstebelastingkoers van
10% in, met hoeveel sal BBP toeneem indien outonome besteding met R10 miljoen
toeneem?
A. R50 miljoen
B. R25.74 miljoen
C. R35.71 miljoen
D. R55.56 miljoen

37

1.19 Die onderstaande grafiek illustreer die Totale besteding in die Keynesiaanse Model.
450

Totale
besteding

AE2
AE1

8 000
e

Inkomste(Y
) besteding vanaf
outonome

Indien
7800 tot 8000
7 800 die regering sy uitgawes verhoog sodat
en die inkomste tot 9000 verhoog, dan is die grootte van die vermenigvuldiger gelyk aan:
A. 10
B. 5
C. 0.2
8 000
9 000
D. 0.25
1.20 Geslote en private ekonomie se bestedingsinligting word in die onderstaande figuur
voorgestel:
450

Verbruiksbesteding,
Investering

2 000

Verbruiksbesteding

Investering
Inkomste(Y)

5 000
By ewewig is, inkomste gelyk
aan. en besparings gelyk aan.
A. R5 000; R0
B. R6 000; R200
C. R10 000; R4 000
D. R10 000; R2 000

38

VRAAG 2
(21 punte)
Die onderstaande tabel toon data vir die land genaamd Land van Melk en Brood. Gebruik die
inligting in die tabel om Vraag 2.1, 2.2 en 2.3 te beantwoord.
Jaar
Prys van melk in Hoeveelheid
Prys van brood
Hoeveelheid van
rand
melk (liter)
in rand
brode
2012
10
1000
7
500
2013
15
2000
9
900
2014
20
1500
11
900
2.1 Veronderstel dat die verbruiksmandjie van die bevolking van die Land van Melk en Brood
uit melk en brood alleenlik bestaan; bereken die inflasiekoers vir 2013-2014, deur 2013 as
basisjaar te gebruik.
(10)
Daarbenewens, veronderstel dat die Land van Melk en Brood slegs melk en brood produseer
2.2 Bereken die nominale bruto binnelandse produk vir die land vir 2014.
(2)
2.3 Deur 2012 as jou basisjaar te gebruik, bereken die BBP deflator vir 2014.
(3)
2.4 In September 2013 was daar 30 413 000 persone tussen die ouderdomme van 15 65 jaar
waaruit die arbeidsmark bestaan het, van wie:
13 234 000 persone was in diens geneem
3 944 000 persone was werkloos (amptelike definisie)
13 235 000 persone was nie ekonomies aktief nie
17 178 000 persone was in die arbeidsmag
3 425 000 persone was ontmoedigde werk-soekers.
2.4.1
2.4.2
2.4.3

Bereken die amptelike arbeidsmagdeelnamekoers deur die bostaande inligting te

gebruik.
(2)
Deur gebruik te maak van die bostaande inligting, bereken die werkloosheidskoers
volgens die uitgebreide definisie.
(2)
Noem die tipe werkloosheid wat ontbreek as ekonomie by volle indiensname is.(1)

2.5 In Bloemfontein ontvang 10 families inkomstes van R1000 elk en die ander tien families
inkomstes van R200. In Bethlehem ontvang tien families inkomstes van R2000 elk en die
ander tien families ontvang inkomstes van R220. In watter gemeenskap is die verspreiding
van inkomste meer ongelyk?
(1)

39

VRAAG 3

(13 punte)

3.1 Gebruik die volgende inligting en beantwoord die vrae wat volg:
C = 1800 + 0,91Yd
I = 1200
G = 1500
X = 800
M = 600+ 0.1Y
T = 100 + 0,2Y
3.1.1 Skryf die bestedingsfunksie neer nadat belasting in berekening gebring is.
3.1.2 Skryf die netto uitvoer funksie neer.
3.1.3 Gebruik die bostaande inligting om die ewewigsinkomste te bereken.
3.1.4 Wat is die inkomstevlak waar die regeringsbegroting gebalanseer sal wees?
3.1.5 Deur gebruik te maak van die bostaande inligting, bereken die
bestedingsvermenigvuldiger.
VRAAG 4

(3)
(2)
(3)
(2)
(3)

(26 punte)

4.1 In poging om stabiliteit/ vertroue in die banksektor terug te bring, sal die Suid-Afrikaanse
Reserwe Bank (SARB) waarskynlik die vereiste reserwekoers verhoog. Deur gebruik te maak
van duidelik gemerkte grafieke, illustreer en verduidelik kortliks die impak van die aksies in
die volgende markte:
4.1.1 Die geldmark
(4)
4.1.2 Die goedere mark
(4)
4.2 Oorweeg die Suid-Afrikaanse rand/VSA dollar wisselkoers, en fokus op die mark van
dollars. Deur gebruik te maak van vraag- en aanbod kurwes, verduidelik of die dollar teenoor
die rand gaan versterk of verswak in die volgende scenarios. Wenk: Neem aan dat die VSA
die enigste handelsvennoot van Suid-Afrika is.
4.2.1 Suid-Afrikaners se smaak en voorkeure vir VSA se produkte verhoog.
(4)
4.2.2 Die Koop Amerikaans (VSA) beleid wat deur President Obama gemplementeer is
neem vorm aan.
. (4)
4.3 Maak gebruik van die Keynesiaanse transmissiemeganisme en die Totale Vraag en Totale
Aanbod (AD/AS) analise om die effek van besluit deur die Reserwebank om staatseffekte van
Suid-Afrikaanse burgers te koop, op die geld-en rele sektore van die ekonomie te illustreer en
verduidelik. Maak gebruik van al die nodige grafieke in jou antwoord.
(10)
TOTAAL = 100

40

UNIVERSITEIT VAN DIE VRYSTAAT

UNIVERSITY OF THE FREE STATE
HOOFKAMPUS/MAIN CAMPUS & QWAQWA CAMPUS
EECF62406
DEPARTEMENT EKONOMIE
DEPARTMENT OF ECONOMICS
CONTACT NUMBER: KONTAKNOMMER: 401 3406/ 9196/ 5069
ADDITIONAL YEAR-END EXAMINATION: NOVEMBER 2013
BYKOMENDE JAAREIND EKSAMEN: NOVEMBER 2013
ASSESSOR(E)/ 1. Mrs C.Campher
ASSESSOR(S): 2. Mr C. Mudzingiri
MODERATOR: Mr. N. Keyser
TYD/TIME: 2 uur/hours
Question 1
1.1 .D
1.2 .C
1.3 .C
1.4 .D
1.5 .A
1.6 .B
1.7 .D
1.8 .D
1.9 .D
1.10 .C
1.11 .B
1.12 .C
1.13 .A
1.14 .C

PUNTE/MARKS: 100
20x2 marks
1.15.D
1.16.A
1.17.C
1.18.C
1.19.B
1.20.D

41

Question 2
21 marks
The table below shows some data from land of milk and bread. Use the table to answer question
2.1, 2.2 and 2.3
year
Price of milk in Quantity of milk Price of Bread in Quantity of
rands
(litres)
rands
bread loaves
2012
10
1000
7
500
2013
15
2000
9
900
2014
20
1500
11
900
2.6 Assuming the consumer basket of inhabitants of land of milk and bread is made up of
milk and bread; calculate the inflation rate for 20132014, use 2013 as your base year.
(10)
i)
Amount spend in the base year-15 X 2000 + 9 X 900 = 30 000 + 8100 = 38 100
ii)
Weights Milk 30000/38100= 0.79 , Bread - 8100/38100=0.21
iii)
Specific price index - 20/15 X100= 133.33
, 11/9 X100 = 122.22
iv)
Composite price index -133.33 X 0.79= 105.33, 122.22 X 0.21= 25.67, 105.33 +
25.67 =131
v)
Inflation rate-(131-100)/100 =31%
2.7 Assuming that land of milk and bread only produces milk and bread
Calculate the nominal gross domestic product for 2014.

(2)

20 X 1500 + 11 X 900= 30000 + 9900 = 39900

2.8 Taking 2012 as your base year, calculate the GDP deflator for 2014

(3)

Nominal GDP = 39900

Real GDP= 1500 X10 + 900 X 7= 15000 +6300 = 21 300
Deflator = NGRP/RGDP = 39900/21300 X100 =187.32
2.9 In September 2013 there were 30 413 000 persons aged 15 65 years comprising the
labour market, of which:
13 234 000 persons were employed
3 944 000 persons were unemployed (official definition)
13 235 000 persons were not economically active
17 178 000 persons were in the labour force
3 425 000 persons were discouraged work-seekers.
2.9.1

Calculate the official labour force participation rate using the information
above.
Labour force part. rate = [Labour force/ Adult pop] x 100 (1 mark if
formula is correct)
=17 178 000/30 413 000 X100 =56.48%

(2)
42

2.9.2

Calculate the expanded definition unemployment rate using the

information above.

(2)

Expanded defn. of unemployment=(3 944 000+3 425 000)/ (17 178 000
+3 425 000)X100 =35.77
2.9.3

Name the type of unemployment that is absent when an economy is at full

employment.
(1)
Cyclical unemployment

2.10 In Bloemfontein ten families have incomes of R1000 each and the other ten families have
incomes of R200. In Bethlehem ten families have incomes of R2000 each and the other
ten families have incomes of R220. In which community is the distribution of income
more unequal?
Bethlehem
(1)

Question 3

13 marks

3.2 Use the following information and answer the questions that follow.
C = 1800 + 0,91Yd
I = 1200
G = 1500
X = 800
M = 600+ 0.1Y
T = 100 + 0,2Y
3.2.1

Write down the consumption function after tax imposition

(3)

C = 1800 + 0,91Yd, Yd= Y-T, T= 100+ 0.2Y, Yd= Y- (100+ 0.2Y)= 0.8Y-100
C=1800+ 0.91(0.8Y-100)
C=1709+0.728Y (3 marks for correct C even without the stages)
3.2.2

3.2.3

3.2.4

Write down the net export function (NX) after tax imposition
M = 600+ 0.1Y,
NX=800-600+ 0.1Y = 200-0.1Y
Use the information 3.1 above to calculate the equilibrium level of income.
TE=C+I+G+X-M
TE=1709+0.728Y+1200+1500+200-0.1Y
TE=4609+0.628Y (3 marks for correct TE even without the stages)

(2)

What is level of income when the government budget balanced?

T=G
100+0.2Y=1500

(2)

(3)

43

0.2Y=1400
Y=7000 (2marks for correct Y even without the stages)
3.2.5 Using the information above, calculate the expenditure multiplier
M=I/1-[c(1-t)-m] =1/1-[0.91(1-0.2)-0.1] = 2.68
Question 4

(3)

26 marks

4.3 As a way of bringing sanity in the banking sector, the South African Reserve Bank (SARB)
is most likely going to increase the require reserve ratio. Using well labelled graphs, illustrate
and briefly explain the impact of the action in the following markets:
4.3.1 The money market
(4)
MS1

MS0

Interest

MD

Money balance

MS

4.3.2

interest

labelling

The goods market

MS0

(4)

CPI

AD1

AD0

GDP (Y)

CPI

AD shift to the left

labelling
44

4.4 Consider the South African rand/ US dollar exchange rate, and focus on the market for
dollar. Using the demand and supply curves, explain whether the dollar would appreciate or
depreciate against the rand, and whether that rand would appreciate or depreciate against the
dollar in the following scenarios. Use the information above to answer 4.2.1 and 4.2. 2: Hint:
Assume US is the only trading partner of South
4.4.1 South Africans tastes and preferences for US goods increase.
(4)

S0

Rands per
dollar

D1
D0
Quantity of US
dollars

Demand for US dollar increases. US dollar appreciates/ rand depreciate

4.4.2

The Buy American (US) policy implemented by President Obama takes shape. (4)
S1

Rands
per
dollar

S0

D0
Quantity of US
dollars

Supply for US decrease in the foreign market. The US dollar appreciates/ The rand depreciates

45

4.5 Make use of the Keynesian transmission mechanism and AD/AS analysis to illustrate and
explain the effect of a decision by the Reserve Bank to buy government bonds from South
African citizens on the monetary and real sectors of the economy. Make use of all the necessary
graphs in your answer.
(10)

Interest
interest

TE

D0

D0

TE=Y
TE1

AS0

TE0

CPI

D1
D0

Monetary sector-Real Sector

I

MS

r
TE

CPI

46