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
Read the following extract and use it to answer question?
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
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.
Which
a) Balance of payments stability
b) Full employment
c) Price stability
d) Distribution of income
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