ry

Economics and Management Science

DEPARTMENT

Basic Macroeconomics

January 2019

This question paper consists of 4 pages including this cover page

Examiner: Mr. Sakaria Karumbu (University of Namibia)

Moderator: Dr. J. M. Nyambe (University of Namibia)

. Read all instructions carefully before you start writing.

. This paper consists of 5 questions.
. Attempt all questions.

UNIVERSITY OF NAMIBIA EXAMINATIONS

 uestion One [26 marks
l.l.Define and discuss GDp.
(2 marks)
l'2'List and explain the two phases and two turning points
of the business cycle. (4 mart<s)
l'3'Suppose a hypothetical economy produces only
one good and can be represented by
following data:
Years Price N$ Quantify
2010 20 400
2011 30 300
2012 25 900
2013 s0 2s0
2014 40 980
a) calculate nominal GDp in yea.s zoto,2011,z0l2,2013
and20l4. (5 marks)
b) calculate real GDP in years 2010 ,2011,2012,2013 and2ol4,use
2010 as the base year.

(5 marks)
c) calculate GDP deflator in years 2010,2011,2012,2013
and2014. (5 marks)
d) calculate economic growth rates in years 201 1,2012,2013
and,20t4. (5 marks)

uestion Two [18 marks

The Namibia Statistic Agency reported the data in NLF
2019 which is represented in the table
below;

Category Number (thousands)

Working Age Population 959,197
Labour X'orce 531,013
Employed 331,444
2.1 Calculate the numb.r otr"o (4.5 marks)
2'2 Calculate the number of people who are not in the labor force
in Namibia inz0l9.
(4.5 marks)
2.3 Calculate the unemployment rate in Namibia in2019.
(4.5 marks)
2.4 calculate the labor force participation rate in Namibia
in2019. (4.5 marks)
 uestion Three [24 marks
3.1. List and discuss the four economic
functions that depository institutions
provide their
customers.
(8 marks)
3,2. In the economy of Briskland,
the commercial banks have deposits
of $500 billion. Their
reserves are 950 billion, g0 percent
of which is in deposits with the central
Bank. There is $20
billion in Central Bank notes outside
the banks, and there are no coins.
a) What is the monetary base?
(4 marks)
b) If all the deposits are money, what is the totar
quantity of money? (4 marks)
c) What is the banks'reserve ratio?
(4 marks)
d) what is the currency drain as a percentage
of the quantity of deposits? (4 marks)

uestion Four [8 marks

In the country of Midland, autonomous
consumption expenditure is
$60 million, and the marginal
propensity to consume is 0'6'
Investment is $110 million, govemment
expenditure is $70 million,
and there are no income taxes'
Investment and government expenditure
are constant-they do not
vary with income. The nation does
not trade with the rest of the world.
a) Draw the aggregate expenditure curve.
(6 marks)
b) What is the autonomous aggregate expenditure?
(2 marks)
c) what is the size of the multiprier in Midrand,s
economy? (2 marks)
d) what is aggregate planned expenditure and what
is happening to inventories when real
GDp
is $800 million?
(6 marks)
e) What is the economy's equilibrium aggregate
expenditure? (2 marks)

uestion Five [14 marks

The table below shows Yellowland's
econom y aggregate demand and supply schedules.
Yellowland's potential GDp is
$300 billion.

I GDP demanded GDP supplied

 120 300 450
130 250 550

a) Plot the aggregate demand curve, the short-run aggregate supply

curve, and the long-run
aggregate supply curve.
(5 marks)
b) Is Yellowland's short-run macroeconomic equilibrium a full-employment
equilibrium, below
full-employment equilibrium, or above full-employment equilibrium?
What is the recessionary
gap? what is the inflationary gap? (2 marks)
c) Suppose aggregate supply decreases by $150 billion. Plot the new aggregate supply curve.
How do real GDP and the price level change in the short run? (5 marks)
d) Is Yellowland's new short-run macroeconomic equilibrium a full-employment
equilibrium,
below full-employment equilibrium, or above full-employment equilibrium?
What is the
recessionary gap? What is the inflationary gap?
(2 marks)

Total Marks 100

The End
Best of luck
 Ui{AM
lJ{tV[fl 3tlY st llililslt

FACULTY ECONOMIC AND MANAGEMENT SCIENCES

DEPARTMENT

ECONOMIC STATISTICS II

JANUARY 2019

DURATION 3 HOURS

Examiner: Mr. V.J Undji (University ofNamibia)

Moderator: Prof' E. Bbaale (Makerere University)

Instructions
L R".d questions carefully and answer all questions'
2. You are allowed to use calculators'
3.Use4decimalplacesforallanswersinvolvingprobabilitiesand2forotheranswels
unless sPecified.
4. Show formulas and your workings'
5'Thisquestionpaperconsistsof4pagesincludingthisfrontpage.
6. Statistical tables are attached'

UNIVERSITY OF NAMIBIA EXAMINATIONS