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ECS2602 ASSIGNMENT 1 SEMESTER 2 AUGUST 2023

Which of the following statements are correct?

a. Macroeconomics studies the determination of the level of output and income for a
specific firm.

b. In macroeconomics we focus on the interaction between different markets,
such as the goods market, the financial market, the labour market and the foreign
exchange market.

c. Real GDP per capita is widely used as a measure of economic welfare or
wellbeing of the residents of a country.

d. The main instrument of fiscal policy is the budget, while the main policy variable is the
interest rate.

e. A contractionary monetary policy implies a decrease in government spending and an
increase in taxation.

1. a, b and c

2. b, c and d

3. b, d and e

4. Only b and c

5. b, c and e

Explanation:

The correct option is 4. Statement a is incorrect. Macroeconomics deals with the economy
as a whole and not a specific firm. Statement b is correct. That is what we will be studying in
this module. Statement c is correct. Statement d is incorrect. The policy variables are
government spending and taxation. Statement e is incorrect. The contractionary monetary
policy implies a decrease in the money supply and therefore results in an increase in the
interest rate.

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Specificaties

Niveau: University
School: Chamberlain College Of Nursing
Opleiding: NURSING
Studiejaar: 2023
Document
Rubriek: Tentamens
Gemaakt op: 14-12-2023
Type: .pdf
Pagina's: 34
Taal: English
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ECS2602 ASSIGNMENT 1 SEMESTER 2 AUGUST 2023

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