The National Development Plan (NDP) looks at building economic сараcity. Explain, with reference to the NDP, why gross fixed capital formation (investment) is important to building economic capacity in the economy, and whether or not the rates that are shown in the table above are sufficient to meet the requirements of the NDF .

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter20: Monetary Policy
Section: Chapter Questions
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The following table was extracted from the June 2019 South African Reserve Bank bulletin.
Real Gross fixed capital formation
Qtr to Qtr percentage change at seasonally adjusted annualised rates
Sector
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Year
Q1 2019
Government
-14.1
-4.3
-9.0
-4.1
-4.4
1.6
Private business
-6.7
-1.3
2.9
-1.4
2.1
-9.8
Public Corporations
-15.5
-13.8
-7.9
-5.6
-12.5
16.6
Total
-9.3
-3.3
-0.7
-2.5
-1.4
-4.5
Q.2.1
Study the data and answer the following questions:
Q.2.1.1
The National Development Plan (NDP) looks at building economic
сарacity.
Explain, with reference to the NDP, why gross fixed capital formation
(investment) is important to building economic capacity in the
economy, and whether or not the rates that are shown in the table
above are sufficient to meet the requirements of the NDF
Transcribed Image Text:The following table was extracted from the June 2019 South African Reserve Bank bulletin. Real Gross fixed capital formation Qtr to Qtr percentage change at seasonally adjusted annualised rates Sector Q1 2018 Q2 2018 Q3 2018 Q4 2018 Year Q1 2019 Government -14.1 -4.3 -9.0 -4.1 -4.4 1.6 Private business -6.7 -1.3 2.9 -1.4 2.1 -9.8 Public Corporations -15.5 -13.8 -7.9 -5.6 -12.5 16.6 Total -9.3 -3.3 -0.7 -2.5 -1.4 -4.5 Q.2.1 Study the data and answer the following questions: Q.2.1.1 The National Development Plan (NDP) looks at building economic сарacity. Explain, with reference to the NDP, why gross fixed capital formation (investment) is important to building economic capacity in the economy, and whether or not the rates that are shown in the table above are sufficient to meet the requirements of the NDF
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