Macroeconomics Answers

The core elements of the Growth Employment and Redistribution (GEAR) strategy of the South African government in 1996, under the leadership of the then finance minister Trevor Manuel were amongst other things:  budget reform to strengthen the redistributive thrust of expenditure  monetary policy to prevent a resurgence of inflation  a reduction in tariffs to contain input prices and facilitate industrial restructuring, compensating partially for the exchange rate depreciation

With each tool in 1.2, provide a detailed explanation on how it can be measured. (11 marks)

The core elements of the Growth Employment and Redistribution (GEAR) strategy of the South African government in 1996, under the leadership of the then finance minister Trevor Manuel were amongst other things:  budget reform to strengthen the redistributive thrust of expenditure  monetary policy to prevent a resurgence of inflation  a reduction in tariffs to contain input prices and facilitate industrial restructuring, compensating partially for the exchange rate depreciation 1.2 Identify and define the macroeconomic variables that can be used to measure whether the strategy was successful or not.

how can macroeconomic variables be measured

what are the possible explanation for the recent failure of fiscal and monetary policy to solve the stagflation problem?

What are the possible explanation for the recent failure of fiscal and monetary policy to solve the stagflation problem?

When the rand appreciates against the dollar, it

a. appreciates against other currencies as well.
b. stimulates the exports and dampens the imports.
c. improves the balance of payments.

[1] None of the statements are correct.
[2] Only a and c
[3] Only b and c
[4] Only b
[5] Only c

If the SARB buys the dollars in the South African foreign exchange market, the South African rand will

[1] not be affected
[2] appreciate
[3] depreciate

A decrease in the demand for USA dollar ($) in the South African foreign exchange market would result if there is

[1] a decrease in the South African exports to the USA.
[2] a decrease in the gold price in South Africa.
[3] a decrease in the South African tourists to the USA.
[4] a decrease in the USA tourists to South Africa.

Which of the following statements regarding the import tariff is/are correct?

a. A specific import tariff benefits the domestic producers by reducing both the domestic price and the quantity of imports.
b. A specific import tariff increases the domestic supply of a good and reduces its domestic price.
c. An introduction of the tariff reduces the quantity demanded of a good and increases its domestic price.

[1] Only a and b
[2] Only a
[3] Only c
[4] Only b
[5] None of the statements are correct

Which of the following statements regarding the foreign sector is/are correct?

a. Absolute advantage is a prerequisite for international trade.
b. Differences in resource endowments necessitate international trade.
c. Countries can only benefit from trade if the opportunity costs among the trading countries are the same.

[1] Only a and b
[2] Only and c
[3] Only b and c
[4] Only b
[5] Only c