WAABERI ACADEMY

MACRO- ECONOMICS

Ch.03 QUESTIONS:

1. The table shows spending hypothetical country ( All values are in USD millions)

consumption function 300+0.65Yd

Investment I 200
Government expenditure G 350

Tax T 20
Net export (X-M) 120

A) compute the equilibrium level of national income for above the economy
B) Assuming that full employment would be experienced at income level of USD 3,000 million state
the problem this economy facing
C) Using spending multiplier, compute the change in the amount of government spending that is
required to achieve the full employment income level
D) Calculate marginal propensity to save
GNP (USD SAVING CONSUMPTION APC APS MPC MPS
MILLION)
250 -40
350 -20

450 0
550 20

650 40

750 60

850 80

A) calculate the amount of consumption at each level of GNP

B) find MPC AND MPS
C) define autonomous consumption and calculate its value
D) assuming that government expenditure Is equal to USD 80 million and investment is USD 80
billion calculate the national equilibrium for above the country
Ch.04 QUESTIONS:
1. the table shows the balance sheet of bank Hargeisa for year 2010
ASSET LIABILTIES

CASH 850 INITAIL DEPOSIT 5,000

LOANS 4,150

TOTAL 5,000 TOTAL 5,000

A) define cash ratio and calculate its value

B) calculate total money supply and total credit created
C) list two limitation of credit creation

item USD (MILLION)

Paper money 3,100

Negotiable certificate of deposit and commercial 1,500

Bank negara certificate 2,850

Fixed deposit and saving deposit in commercial bank 6,750

Current deposit in commercial bank 6,850

Fixed deposit and saving deposit in other financial institutions 7,100

A) assuming that that amount of fiat money is USD 5,500 , calculate the amount of coins
B) calculate M1,M2,M3 Based on (a)
 item USD (MILLION)

Currency in circulation 85,000

coins 32,00

Demand current deposit of the private sector 105,000

Saving and deposit in commercial banks 210,000

NCD, REPO and BNM certificate 198,000

Deposit placed with other banking institution 18,300

calculate

A) paper money
B) M1
C) M2
D) M3
E) Narrow near money
Ch.05 QUESTIONS
1. Determine the tax structure adopted by each country
Income level 10,000 12,000 14,000
Country IRIS
Tax rate 1,250 1,500 1,750

Income level 8,000 10,000 12,000

country IMAN
Tax rate 720 1,440 2,400

A) Determine the tax structure by each country

2. The table shows the government spending in tax revenue for hypothetical economy over five-year
period .

Year Government spending Tax revenue

2012 800 825

2013 850 850

2014 900 875

2015 950 900

2016 1,000 925

A) In which years were there budget deficit and what are amounts?
B) In which year was there budget surplus and what the amount?
C) What is total amount of public debt in this economy over the five-year period ?
 3. The table shows the total taxes paid by individuals at different income levels.

Total tax RM
Total income RM
Hamdi Rayma Ifrah

6,000 300 300 360

8,000 560 400 400

10,000 800 500 400

12,000 1,080 600 360

A) Calculate the tax rate when the total income is RM 8,000 for three individual’s
B) Identify and explain the type of tax rate structure for each individual
C) State three examples of direct tax
Ch.06 QUESTIONS

The table shows the total labor force ,the number employed and the un-employed country in the
country

year total labor force(‘000) employed(0’00) un-employed

2015 7,500 -------------------- 820

2016 ------------------ 8,900 1,520

A) Fill in the blanks with appropriate answers

B) Calculate the un-employment rate fir 2015 and 2016
C) Explain briefly the two types of un-employment

Component Number of people (million)

Under 16 45

Working full time 80

Working part time 40

Retired 30

Un-employment 5

A) What is total labor force

B) What’s the un-employment rate
C) Suggest one policy to curb un-employment