Answer to Question #134850 in Macroeconomics for Susan chimese

Question

Muchuu's old Corolla emits alot of carbon such that it contaminates the entire compound ,this emission state is closely related to two depravities you once learnt in class .you are mandated to briefly explain these two economic depravities that affect literally most zambians (hint ,cause , effects and cure )

Answer 1

1 Poverty and inequality- it's estimated that one in every two Zambians live below the poverty line, and those just above it are slowly slipping into poverty. This is because the government ha public debts not embraced social protective measures that can safeguard the poor. As a result, more people are being pushed below the poverty line, thus affecting the country's GDP

2 Public debt - the major depravities in Zambia is its reliance on unstainable debt. Zambia debts have risen from 20% to that of 76% of its GDP in 2018. The consequences of these huge debts are putting a lot of pressure on the government to service foreign debts. As a result, the country has increased taxes, which has pushed more people below the poverty level. Also, some government infrastructure such as electricity network has been taken over by the government as a means of servicing foreign debts