Question

Question 4 (Marks: 25)

Conduct your own research on the current state of the South African economy in terms of the five main macroeconomic objectives. Write a paragraph for each macroeconomic objective in which you detail your findings. 

(Hint: You must provide accurate information based on your research and as far as

possible, specify numerically the current status quo with regards to each of the macroeconomic objectives.)

Answer 1

the five micro economic objectives include

• Non-Inflationary Growth
• Low Inflation.
• Low Unemployment or Full Employment.
• Equilibrium in Balance of Payments.
• Fair Distribution of Income.

Non-Inflationary Growth-South Africa lacks stable and sustainable economic growth and development

High Inflation- In south Africa, the price of goods and services has rose rapidly due to the closure of some business leading to decreased supply of goods and services.

High Employment-South Africa is experiencing high rate of unemployment caused by closure of industries due to the ongoing pandemic.

Equilibrium in Balance of Payments-The ongoing pandemic has restricted movements thus affecting foreign trade in south Africa.

Fair Distribution of Income-There is fair distribution of income in south Africa due to the accountability in the government.