Assignment Feedback and Exam

Preparation Session
Principles of Macroeconomics
(POME02-6)
30 April 2024
 What are we covering?

• General exam preparation

• Assignment feedback
• Examination rules for
online proctored exams
 Exam Structure
• Section A: MCQs (20 marks)
• Section B: Short questions (30 marks)
• Section C: Short case questions 20 marks
• Exam is In-Moodle
• Answer ALL questions
• Closed book proctored examination.
• 2 hours 20 mins
 Topic 1 review
You now know more about:
• Production, income and spending
• Aggregate (meaning TOTAL) spending in South Africa consists of
C+I+G+X-Z
• C for Consumption (what ALL the households spend)
• I for Investment (what ALL the firms spend)
• G for Government expenditure
• X for Exports (foreign countries spending on South African goods)
• Z for Imports (South African spending on foreign goods)
• Taxes, savings and imports are leakages from the circular flow
of income and spending.
• Government spending, investment and exports are injections
into the circular flow of income and spending.
 Topic 2 & 3
• There are 5 objectives that are important for economists:

• Economic growth
• Full employment
• Price stability
• External stability
• Equitable distribution of income

• To see if you have reached your objectives, you have to be able to measure
it!
• Do activities in your study guide on how to calculate the various goals
 Topic 4

Why do countries trade?

• The world’s economies have become increasingly integrated; this
process is called globalisation.
• The extent of a country’s involvement in globalisation is called
openness, or the degree of integration into the international economy.
• The South African economy is described as an open economy.
• Trade improves product choices
• It expands markets
Exchange rates
 Keynesian model

• Spending (A) and production (Y) could be:

➢A=Y (in equilibrium)
➢A>Y
➢A<Y
• Jean Baptiste Say formulated a law that production
and spending will always be equal.
• Say’s law: supply creates its own demand (Y creates A)
• During the Great Depression, it seemed that Say’s Law was
incorrect. John Maynard Keynes had a new theory that
spending caused production (A creates Y)
 Keynesian model example

Example
Use the information below to answer the questions that follow:
Consumption (C) = 500 + 0.8Yd
Investment (I) = 300
Government spending (G) = 1000
Export (x) = 400
Imports (z) = 350
Tax rate (t) = 0.2
Marginal propensity to import (m) = 0.1
 Keynesian model example

a) Calculate marginal propensity to save if no taxes were imposed

b) Calculate the equilibrium income in a two-sector economy with
consumers and investors
c) Calculate the equilibrium income a three-sector economy with
consumers, investors and government
d) Calculate the equilibrium in an open economy with all four sectors
e) For the four-sector economy, if full employment (Yf) = 5000, calculate
the amount of spending needed to attain full employment
f) Calculate the net exports
 Keynesian model example

a)MPS = 1-MPC = 1 – 0.8 = 0.2

b) Multiplier in two sector = 1/1-c = 1/1-0.8 = 5
Autonomous spending = C + I = 500 + 300 = 800
Equilibrium income in two sector = 800*5 = 4000
c) Multiplier in 3 sector = 1/1-c(1-t) = 1/1-0.8(1- 0.2) = 2.78
Autonomous spending = C + I + G = 500+300+1000 = 1800
Equilibrium income in three sector = 1800*2.78 = 5004
 Keynesian model example

e) Y0 = 4014.50; Yf = 5000. Gap = 5000 – 4014.50 = 985.50

Spending needed to reach full employment = 985.50/multiplier
= 985.50/2.17
= 454.15

f) Net exports=exports-imports = 400-350 = 50

 Topic 5 Financial Intermediaries

• An economy has a real and financial sector with real and financial
transactions.
• A financial transaction is when no goods or services are exchanged.
• Financial intermediaries act as middleman between surplus units
(people that save) and deficit unit (people that borrow).
• If you lend money to an institution or person you get ‘paid’ for the
money (interest rate).
• Examples of financial intermediaries……????
 Functions of Money

• Money is anything that is generally accepted as

payment for goods and services or that is accepted in
settlement of debt.
• Money is:
• … medium of exchange
• … a unit of account (standard of value)
• … a store of value
• … not income or wealth
 Money in South Africa

• To measure money, three groups are used:

• M1 – The conventional measure
• M2 – A broader definition of money
• M3 – The most comprehensive measure of money
 Demand for money

Two basic components of the demand

for money:
• The transactions demand for money
• The demand for money as an asset
• Active money vs passive money balances
 The SARB

• What is the primary objective of the SARB?

• What are the four major areas of responsibility of the

SARB?
1) Formulation and implementation of monetary policy
2) Service to the government
3) Provision of economic and
statistical services
4) Maintaining financial stability
 Monetary policy in the AD-AS framework

It is implemented when the

central bank (e.g. the SARB)
Expansionary reduces the repo rate at which it Investment increases. The
monetary policy provides credit to the banks. The AD curve shifts to the right.
general interest rate level in the
economy decreases.

It is implemented when the

Contractionary central bank increases the Investment decreases.
monetary policy interest rate. The general The AD curve shifts to the
interest rate level in the left.
economy increases.
 Fiscal policy in the AD-AS framework
Government
expenditure (G)
increases
Expansionary
The AD curve shifts to the
fiscal policy
Taxes (T) decrease, right.
which increases
consumption (C)

Government
expenditure (G)
Contractionary decreases
fiscal policy The AD curve shifts to the
Taxes (T) increase, which left.
decreases consumption
(C)
Changes in aggregate demand
Changes in aggregate supply
 Topic 6 – Economic growth

• Demand factors
• Supply factors
Assignment Feedback
 Assignment feedback
• Marking guidelines discussion
Exam Rules for Online
Proctored Exams
 Where do I find the exam rules?

• Your Milpark Student Handbook.

• Exam Instructions document.

It is your responsibility to work through all the communication and

resources that are provided to you.
VERY IMPORTANT: you are
not being proctored live.
Our review team will review
the exam recording AFTER
the exam is written.
These rules are to be read in conjunction with the Milpark Education Good Conduct and Disciplinary
Policy for Students, with specific reference to misconduct in assessments.

Examination rules for remotely (online) proctored exams

1. Students may not write an examination if:

a) they have not completed all the compulsory formative assessments, i.e. if they have not
submitted assignments (a valid attempt) and/or have not completed a compulsory test,
where applicable, by the due date; or
b) they are not registered for the examination date.
2. Students are to ensure that they can successfully complete the online exam using the Milpark
prescribed remote (online) proctoring functionality. It is the student’s responsibility to ensure that
they have the required hardware in place and have enough and consistent access to data for the
duration of the examination.
3. Students must be properly dressed for a public setting. NB!
4. It is the students’ responsibility to ensure that the module and examination paper they write is
the same as the module for which they are registered.
5. Students must ensure that they use the Summative Assessment template provided on
myCourses to complete their answers, if the exam requires students to complete the paper or a
section of the paper in MS Word format. For this type of exam, students must download and
save the Summative Assessment template with their student number as the file name.

6. Students are to conduct the ID verification process when prompted by the remote proctoring
functionality. Students must preferably use their ID cards and must ensure that all details are
clearly captured. Students may, as an alternative, use their ID books, driver’s licence or
passports. No other form of identification will be accepted. Students must ensure that they
wear clothing that makes identification possible during this step of the examination process. If
the identity check is not carried out correctly and if the identity of the student cannot be NB!
verified, the examination will not be assessed, and the student will be required to retake
the exam.
7. Students may complete the online examination at the venue of their choice, provided
that the following conditions are met:
a) The lighting of the room must be bright enough to be considered “daylight quality”
so that the student is clearly visible for the duration of the examination.
b) The student must be alone in the room.
c) The room must be as quiet as possible – no music or other noise is allowed.
d) The student must sit at a desk, table or other suitable workspace cleared of all
objects unless specifically stipulated otherwise in the Exam Instructions. If scrap
paper is allowed according to the Exam Instructions, individual, separate blank
pages must be used and each page must be shown to the webcam, both front and
back, and clearly visible, during the 360-degree room scan step before the start of
the exam. If the student does not clearly show the blank pages in the room scan
and the sound of rustling pages can be heard during the exam, or the student
appears to be in possession of and/or using any paper, the examination will not be
assessed, and the student will be required to retake the exam.
 e) Unless specifically stipulated in the Exam Instructions, no study material, notes, or
resources of any kind are allowed in the venue/room where the exam is being written.
f) No prohibited items are allowed in the venue/room where the exam is being written.
This includes but is not limited to cellphones (subject to the additional specifications
below), other mobile devices, tablets, smart watches, health checkers (FitBit or similar)
and head/earphones.

8. Students must stay in sight of the webcam for the duration of the exam with at least their full
face visible to the camera for the duration of the exam. Their full face must be visible even when
the student writes something down or tilts their head down.
NB!
9. A 360-degree webcam scan of the room where the student takes the examination will
form part of the procedure. Students are required to remove all personal (privacy-
related) and prohibited items from the room. Students must use their webcam to
show their entire workspace and the entire room. Students must ensure that they
move their camera slowly and steadily to ensure a clear image. The room scan must NB!
be conducted thoroughly and with the necessary care and diligence. If the room scan
was not conducted in such a way that it can be confirmed beyond a reasonable doubt
that the room met the specifications as prescribed in these rules, the examination will
not be assessed, and the student will have to retake the exam.
10. The exam must be completed in the same room scanned during the step described in
the rule above.
11. All cellphones must be switched off during the examination and should not be visible.
Under no circumstances may cellphones be used as calculators, as second screens, to
access online resources or study material (if this is permitted in the Exam Instructions),
myMilpark or for any other purpose during the examination. If a cellphone/mobile device is
used to create a Wi-Fi-hotspot to take the exam, the sound must be switched off and the
cellphone/device should be placed such that the student does not have sight of the
cellphone for the duration of the exam.
12. Students may not be in possession of or use any second laptops, tablets, smart watches, or
head/earphones of any kind during an examination session, and these devices are not
allowed near the student during the examination. Second computer screens are not
allowed unless specifically permitted in the Assessment Guidelines.
13. Students may not access any websites other than the myCourses page where the exam is
hosted or the online proctoring support sites, unless otherwise specified in the Exam
Instructions.
14. Students may not access the support material, resources, or online copies of the study
material, unless otherwise specified in the Exam Instructions.
15. Students must ensure that their screen is recorded for the duration of the examination.
To this extent, students should not visit any privacy-related content during the
examination.
16. Students may not leave the room for the duration of the exam. Students are not allowed
to take bathroom breaks. If a student sees no other choice than to take a bathroom break
during the exam, the student must provide a clear, verbal notification into the webcam.
NB!
17. Students may not be in contact with or talk with any other person for any reason by any
means for the duration of the exam.
18. Students are not allowed to make or keep copies by any means of the exam or exam
questions. The printing of any portion of the exam or annexures is strictly prohibited,
unless specifically allowed in the Exam Instructions.
20. Should students encounter technical issues during the exam, they must log their query on
the technical support page on MyCourses. All exam queries must be logged via technical
support during the exam. Queries via email are not accepted. If a student encounters
technical issues during the exam and fails to log a query as indicated above, the technical
issue will not be considered valid if raised at a later stage after the exam has taken place.
21. If a student falls ill on the date on which the assessment is due to take place, or falls ill
during the assessment, but nevertheless insists on writing the paper, no special assessment
or deferred assessment will be granted afterwards under any circumstances.
22. If a student is in breach of any of the Rules set out above to the extent that the integrity of
the exam is compromised, the examination will not be assessed and the student may be NB!
required to retake the exam, or repeat the module, or face disciplinary action depending on
the severity and nature of the breach.
23. Examination results are final only after it has been established that there are no suspicious
or unlawful irregularities. This verification may take up to four (4) weeks after the
publication of results. Results may be reviewed at any stage after release as part of an
investigation for disciplinary action in term of the Milpark Education Good Conduct and
Disciplinary Policy for Students.
21. If a student falls ill on the date on which the assessment is due to take place, or falls ill
during the assessment, but nevertheless insists on writing the paper, no special assessment
or deferred assessment will be granted afterwards under any circumstances.
22. If a student is in breach of any of the Rules set out above to the extent that the integrity of
the exam is compromised, the examination will not be assessed and the student may be
required to retake the exam, or repeat the module, or face disciplinary action depending on
the severity and nature of the breach.
NB!
23. Examination results are final only after it has been established that there are no suspicious
or unlawful irregularities. This verification may take up to four (4) weeks after the
publication of results. Results may be reviewed at any stage after release as part of an
investigation for disciplinary action in term of the Milpark Education Good Conduct and
Disciplinary Policy for Students.
Exam Preparation:
General
 Exam Instructions document

• It is critical that you work through this document well in advance

of your exam.
• It provides detail about the exam itself: out of marks, times,
format, etc.
• It shows you what you are/are not allowed to have with you in the
exam.
 Additional requirements for
(POME02-6)
Is a calculator allowed? Yes

Online access to Milpark guide/material? No

Are prepopulated templates in Word/Excel allowed? No

Is a second screen allowed? No

Is a second device allowed to access e-study guides? No

Are any other documents allowed? May I have scrap/note Yes, 1 sheet
paper?
Please ensure that you read
the detail provided in the
Exam Instructions.
You MUST
check your
device.
 Ensure your system is set up correctly
• Work through all the detail on the Proctorio Help tab as well as the
lessons on the Mock Exam tab.

You must do
this well
BEFORE the
exam.

• Ask for assistance if you cannot resolve the problem:

studentservices@milpark.ac.za
 Practical Steps

• Use all the opportunities to familiarize yourself with the online

proctored exam environment and requirements.
• Do the proctored online mock exam (mock summative
assessment) – you have multiple attempts to allow you to iron
out system problems and practice the ID scan and room scan.
Ensure that your room is set up
the day before the exam, that
you have enough data and a
stable internet connection, that
your computer is fully charged
and that you have all the
equipment you will need.
 What happens if there is loadshedding
On days with loadshedding, the
exam window will open a few
minutes before the scheduled
exam time and close a few
minutes after. You must still
complete the exam in the
prescribed time, but you will have
some flexibility around your start
and finish time.
For example, if your exam is
scheduled for 09:00 to 12:00 (i.e.
three-hour duration) during
loadshedding, and the exam
window is 30 minutes, the exam
will be available from 08:30 to
12:30. So, you can start your exam
at 08:45 and finish at 11:45
because you still need to stick to
the three hours for the exam
duration.
• The duration of the exam window can be
found in the Exam Instructions
document for each module. Read them
carefully and well in advance. Neglecting
this step may lead to time
mismanagement during the exam and
negatively affect your performance.
• The updated assessment protocol is
effective from the 5th of March 2024,
and you’ll see this update in the Student
Handbook too.
 Notes for exam day
• If you are experiencing technical issue on the exam day:
• Click on Technical Support.

You can Ask a question

or Get in touch:
• Select Get in touch and Live Chat to talk to a support agent.
• Type your message and click on Start chat.
• Do not close the window until we have contacted you.
• Once your issue is resolved click on End chat.

• The support agent may indicate that they will contact you
on your cellphone to assist. Under these circumstances
you are allowed to answer your phone.

DO NOT:
• Try to phone us.
• Send an e-mail.
 Consequences of non-compliance

• Breaches of rules that impact the validity of the exam will result in the exam
being considered void. It is not a valid exam and will not be marked. You will
have to rewrite the exam.
• Depending on the seriousness of the non-compliance, it may lead to disciplinary
action.
THANK YOU
How to get in touch with us:
MILPARK EDUCATION MILPARK BUSINESS SCHOOL
enquiries@milpark.ac.za mbs@milpark.ac.za

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