Answer to Question #264626 in Macroeconomics for Boitu

Question

describe the direction that the authorities should follow in order to reverse the continually deepening economic stagnation in South Africa?

Answer 1

Solution:

The government of South Africa should endeavor to achieve economic growth by investing in human capital development, developing infrastructure, lowering the high rate of unemployment, eliminating poverty, enhancing food production, improving healthcare, and encouraging investments and savings. The government should also lower taxes so that consumption can be enhanced which increases the national income.