Macroeconomics Answers

The core elements of the 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
1.1 With reference to the above, identify the macroeconomic objectives in these elements (3 marks)
1.2 Identify and define the macroeconomic variables that can be used to measure whether the strategy was successful or not.(6 marks)
1.3 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.

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

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 depreciationIdentify and define the macroeconomic variables that can be used to measure whether the strategy was successful or not.

Identify and define the macroeconomic variables that can be used to measure wether the strategy was successful or not

Q20. Genovia has experienced exceptional growth in recent years. Its GDP per capita has increased from around $30,000 to $50,000 in last 5 years. Over the period quantity demanded of personal cars has increased from 450,000 units per year to 600,000 units. Quantity demanded of public transport, however, has declined from 10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell which product is a normal good and which one is inferior.

Given inflationary expectations, explain and show why a reduction in the growth rate of money will lead to an inflationaty recession

the core elements of growth employment and redistribution (GEAR) streategy of the South African government in 1996 ,under the leadership of then finance minister Trevor Manuel were amongst other things , bugdet reform to stregnthen 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 ,compensatation partially for exchange rate depreciation. identify and define the macroeconomic variables that can be used to measure whether the strategy eas successful or not

Compare and contrast between convenotional and unconventional Monetary policy

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

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