Answer to Question #268729 in Macroeconomics for khethiwe

Question

Given the information in the extract, the Simple Keynesian Macroeconomic Model concludes the following

about the South African economy in 2006. (4 marks)

a) Excess demand

b) Excess supply

c) Macroeconomic equilibrium

d) Aggregate spending is less than output

Answer 1

a)     Excess demand

It increased with a target range of 3% to 6% in the 30 sequential months to February 2006.

b)     Excess supply

In 2017, development in the global trade of possessions be around 4.3 percent, closely three times the pace experiential in 2016, and up from an middling of 2.6 percent over the previous five years

c)      Macroeconomic equilibrium

It originated as no amazement when the present account deficit surpassed 6 percent of GDP in 2006 and continued high afterward.

d)     Aggregate spending is less than output

The administration launched the Speeded and Shared Growth Ingenuity for South Africa (ASGISA) in 2006. This creativity envisages rapid lessening in poverty, joblessness and development in economic growth allowing the country to achieve major enlargement goals