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Which macroeconomic objective is not being explicitly pursued in the above binding constraints? a) Balance of payments stability b) Full employment c) Price stability d) Distribution of income

Which macroeconomic objective is not being explicitly pursued in the above binding constraints? a) Balance of payments stability b) Full employment c) Price stability d) Distribution of income

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
Problem 11P
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1.6 Read the following extract and use it to answer question 1.6-1.8. The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) was launched by Deputy President Phumzile 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 Source: https://www.gov.za/sites/default/files/gcis_document/201409/asgisa-2007.pdf Accessed: 19/08/21 Which macroeconomic objective is not being explicitly pursued in the above binding constraints? a) Balance of payments stability b) Full employment c) Price stability d) Distribution of income 1.7 Given the binding constraints above, which of the following sources of economic growth is the South African government NOT aiming to make use of? a) Productivity b) Human capital c) Labour supply d) Increases in aggregate demand 1.8 Given the information in the extract, the Simple Keynesian Macroeconomic Model condudes 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
Transcribed Image Text:1.6 Read the following extract and use it to answer question 1.6-1.8. The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) was launched by Deputy President Phumzile 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 Source: https://www.gov.za/sites/default/files/gcis_document/201409/asgisa-2007.pdf Accessed: 19/08/21 Which macroeconomic objective is not being explicitly pursued in the above binding constraints? a) Balance of payments stability b) Full employment c) Price stability d) Distribution of income 1.7 Given the binding constraints above, which of the following sources of economic growth is the South African government NOT aiming to make use of? a) Productivity b) Human capital c) Labour supply d) Increases in aggregate demand 1.8 Given the information in the extract, the Simple Keynesian Macroeconomic Model condudes 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
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