The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) was launched by Deputy PresidentPhumzile Mlambo-Ngcuka in February 2006. After research and discussion with stakeholders, government identified six “binding constraints on growth” that needed to be addressed so as to progress in its desire for shared growth and to achieve its target of halving unemployment and poverty between 2004 and 2014. This could be achieved if the economy grew at an average rate of at least 4.5% in the period to 2009, and by an average of 6% in the period 2010 to 2014. These binding constraints were: deficiencies in government’s capacity the volatility of the currency low levels of investment infrastructure and infrastructure services shortages of suitably skilled graduates, technicians and artisans insufficiently competitive industrial and services sectors and weak sector strategies inequality and marginalisation, resulting in many economically marginalised people being unable to contribute to and/or share in the benefits of growth and development Given the information in the extract, the Simple Keynesian Macroeconomic Model concludes the following about the South African economy in 2006. a) Excess demand b) Excess supply c) Macroeconomic equilibrium d) Aggregate spending is less than output
Read the following extract and use it to answer question?
The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) was launched by Deputy PresidentPhumzile Mlambo-Ngcuka in February 2006. After research and discussion with stakeholders, government
identified six “binding constraints on growth” that needed to be addressed so as to progress in its desire for shared growth and to achieve its target of halving
could be achieved if the economy grew at an average rate of at least 4.5% in the period to 2009, and by an average of 6% in the period 2010 to 2014.
These binding constraints were:
deficiencies in government’s capacity
the volatility of the currency
low levels of investment infrastructure and infrastructure services
shortages of suitably skilled graduates, technicians and artisans
insufficiently competitive industrial and services sectors and weak sector strategies
inequality and marginalisation, resulting in many economically marginalised people being unable
to contribute to and/or share in the benefits of growth and development
Given the information in the extract, the Simple Keynesian
a) Excess demand
b)
c) Macroeconomic equilibrium
d) Aggregate spending is less than output
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