Answer to Question #124223 in Macroeconomics for ingrid

Question

It is clear that the South African economy needs to grow. We need to make up for lost incomes, lost
jobs, lost tax revenue. Our fiscal stance will be more sustainable if GDP grows. Apply your knowledge
of the drivers of growth and explain what can drive long-run economic growth for South Africa. You
can use models, graphs and explain what plans you propose to get the drivers of
growth going.

Answer 1

In the long run investment, human capital development and international trade are positively associated with economic growth, while population growth, government consumption, and inflation are negatively associated with economic growth.