CENTRE FOR EXTERNAL STUDIES
2013 Inspiring Minds and Shaping the Future
ASSIGNMENT LETTER
SEMESTER 1
INTERMEDIATE MACRO ECONOMICS I
EMA3671
PROGRAMME:
B Education
Center for External Studies
2013 Assignments
EMA3671 INTERMEDIATE MACRO ECONOMICS I
Dear Student,
You are welcome to the University of Namibia and to the Centre for External Studies in particular. We hope your studies will be rewarded with success. We advise you to get all the relevant information and booklets available for distance students from your nearest UNAM centre. These documents will provide advice on how to approach your studies and will guide you through your study materials but it will also give you administrative information. Above all, we would like you to succeed – to get as much as possible out of your studies and to pass the assignments and examinations.
Study materials
Your study guide is essentially your “teacher/lecturer”. Visit the library to consult prescribed books and recommended readings that are indicated in the study guide.
You are strongly advised to follow the guidelines which are taken up in a special booklet namely “The Distance Student’s Guide to Study”
Assignments
Submission of assignments
It is very important to complete and submit a clean and clear assignment for marking. Every page of the completed assignment must be numbered in the correct order and the student must ensure that this has been done correctly before the pages are stapled together inside the assignment cover. Each assignment must be stapled in a separate assignment cover. Assignment covers and envelopes are supplied together with the study material to each student. In submitting assignments, students must use these self-addressed envelopes (addressed to the Centre for External Studies) for the submission of all assignments. You are encouraged to complete and submit all assignments for registered modules on or before the given due date on the assignment letter. You should adhere to…
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permanent income theory
an economy has a permanent income ndefined as a a weighted sum of current income in a year t(y) and actual incomes obtained in the immediate two previous years (Yt-1=Yt-20 Ypt= 0.5Yt+0.3Yt-1+0.2Yt-1 if the marginal prospensity to consume out of permanent income is 0.9 and Yt=Yt-1=Yt-2=N$200 million,(1) derive the short run aggregate consumption function within the framework of permanent income theory of consumption, and interpret it with the help of the diagram , (2) use an appropriate diagram to explain how a permain increase in income of 10 million will effect the level of aggregate consumption spending and determine how many years it will take before household re-establish a stable consumption level
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