Answer to Question #202741 in Macroeconomics for Chante

Question

2. Represent Gqubule’s reasoning using the AD’-PC model from chapter 7: 2.1 The Covid-19 lockdown as a supply shock only. (6) 2.2 His monetary policy proposals. (6) 2.3 His proposals for what to do when too much money is created. (6) (all on a single graph, with explanations, please)

Answer 1

Most African countries have enacted policies that induce social isolation, such as border and travel restrictions, school closures, and bans on big gatherings. South Africa has imposed a 21-day state of emergency. The crisis will have a tremendous influence on Africa's progress, both internally and outside, with huge implications for the well-being and number of people living in poverty.