1.3 Read the following extract and answer questions 1.3-1.5. South Africa’s economy grew by 1.1% in the first quarter of the year Stats SA has published the latest gross domestic product (GDP) data covering the first quarter of the year, showing that the economy grew by 1.1% in the first three months of 2021. The growth follows a revised 1.4% rise in real GDP in the fourth quarter of 2020. On an annualised basis, the economy grew 4.6% quarter-on-quarter. Following confusion caused by the annualisation of GDP data in 2020 – amid the Covid-19 pandemic and resulting lockdowns – Stats SA said it would no longer use the annualised data as the headline GDP statistic. During periods of steady economic growth, annualising is a useful way of expressing quarter-on-quarter performance in annual terms, Stats SA said. However, during periods of economic instability, annualising can be misleading, because it exaggerates growth rates that are unlikely to be repeated. Source: https://businesstech.co.za/news/finance/496851/south-africas-economy-grew-by-1-1-in-the-first-quarterof-the-year/
1.3 Read the following extract and answer questions 1.3-1.5.
South Africa’s economy grew by 1.1% in the first quarter of the year
Stats SA has published the latest
showing that the economy grew by 1.1% in the first three months of 2021.
The growth follows a revised 1.4% rise in real GDP in the fourth quarter of 2020. On an annualised basis, the
economy grew 4.6% quarter-on-quarter.
Following confusion caused by the annualisation of GDP data in 2020 – amid the Covid-19 pandemic and
resulting lockdowns – Stats SA said it would no longer use the annualised data as the headline GDP statistic.
During periods of steady
performance in annual terms, Stats SA said. However, during periods of economic instability, annualising can be
misleading, because it exaggerates growth rates that are unlikely to be repeated.
Source: https://businesstech.co.za/news/finance/496851/south-africas-economy-grew-by-1-1-in-the-first-quarterof-the-year/
Accessed: 19/08/21
The central problem that is evident in the above extract is that of…
a) Economic welfare
b) Data revision
c) Unrecorded activity
d) Non-market production
1.4 “Periods of economic instability” are in line with which of the following views of the business cycle?
a) The Structuralist view
b) The Keynesian view
c) The Classical view
d) The Monetarist view
1.5 Given the information about the South African economy in the extract, which of the following will determine
the level of autonomous consumption?
a) The level of economic growth
b) The level of risk and or uncertainty
c) The level of the interest rate
d) Savings and or credit
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