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IMA612S-INTERMEDIATE MACROECONOMICS-2ND OPP-DEC 2025 |
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nAmlBIA unlVERSITY
OF SCI En CE Ano TECH n OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION : BACHELOR OF ECONONOMICS
QUALIFICATION CODE: 07BECO
LEVEL: 7
COURSE CODE: IMA612S
COURSE NAME: INTERMEDIATE
MACROECONOMICS
SESSION: DECEMBER 2025
DURATION: 3 HOURS
PAPER: THEORY {PAPER 1)
MARKS: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S) Mr. Eslon Ngeendepi
MODERATOR: Mr. Pinehas Nangula
INSTRUCTIONS
1. Answer ALL the questions.
2. Read all the questions carefully before answering.
3. Number the answers clearly
THIS QUESTION PAPER CONSISTS OF_4_ PAGES {Including this front page)
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QUESTION 1
[35 Marks]
1.1 Using the table below which shows the CPI for the Namibian economy over 2
years, calculate:
a) Basket CPI for 2024.
(4)
b) CPI for 2024 based on 2023 prices
(4)
c) The percent increase in price level from 2023 to 2024.
(3)
Year
2023
2024
Item
Coffee
Scones
Coffee
Scones
Price
N$2.00
N$3 .50
N$2.25
$4.00
Quantity .
100 units
200 units
100 units
200 units
1.2
i. Using the table below answer questions (a), (b), (c) and (d) below.
Year Price of
Fish
2022 N$7
2023 N$8
2024 N$9
Quantity of
Fish)
400
450
900
Price of Pork Quantity
of Pork
N$8
225
N$7
250
N$6
275
Price of
Beef
10
12
15
Quantity
of Beef
175
275
275
(a) Calculate nominal GDP in each of the three years.
(6)
(b) Calculate Real GDP in each of the three years, using 2022 as the base year. (6)
(c) Calculate the GDP deflator for each of the three years.
(6)
(d) Calculate inflation for 2023 and 2024.
( 6)
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QUESTION 2
Using the given information answer the following questions.
National Income (Y)
Consumption (C)
N$0
N$80
100
140
200
200
300
260
400
320
In N$ million
(a) State MPC and MPS.
(b) State the consumption function.
(c) State the savings function.
(d) What will be the size of the multiplier if MPS is 0.4?
[15 Marks]
(4)
(4)
(3)
(4)
QUESTION 3
[20 Marks]
3.1 Consider a closed economy which can be characterized by the following
equations.
C = 200 + 0.2S(Y - T)
I = 140 + 0.2SY - 3000i
G = 300
T = 120
Mv = 2Y - 30 000i
Ms= 1600
(a) Derive an equation for the IS curve.
(4)
(b) Derive an equation for the LM curve.
(4)
(c) Determine the equilibrium income and interest rate (round-off answer to two
decimal places) in the two markets.
(8)
(d) Calculate the equilibrium level of consumption.
(5)
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QUESTION 4
[20 Marks]
Compare and critically evaluate the main consumption theories: the Absolute Income
Hypothesis, the Life-Cycle Hypothesis, the Permanent Income Hypothesis, and the
Relative Income Hypothesis. In your answer, discuss the key assumptions, similarities,
and differences among theories, and assess their relevance in explaining consumer
behavior in modern economies. Use relevant graphs and illustrations to support your
discussion.
QUESTION 5
[10 Marks]
(a) Outline three main reasons why firms hold inventories.
(3)
(b) Identify three main types of investment.
(3)
(c) Distinguish between Gross National Product (GNP) and Gross Domestic Product
(GDP).
(4)
TOTAL MARKS: 100
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