The South African economy is in slump due to the Covid-19 lockdowns imposed in 2020, and the current public debt being extensive. 1.1 Explain the trade-off the government will encounter in the short run as a result of its engagement in deficit spending. 1.2 Give five (5) examples to explain the trade- off of long-run objectives that arise as a result of the government's engagement in deficit spending. 1.3 Discuss whether tax revenue collection by the South African Revenue Services (SARS) changes with the recession. Explain your answer. 1.4 Why is the reduction in budget deficit important for boosting the South African economy?

The South African economy is in slump due to the Covid-19 lockdowns imposed in 2020, and the current public debt being extensive. 1.1 Explain the trade-off the government will encounter in the short run as a result of its engagement in deficit spending. 1.2 Give five (5) examples to explain the trade- off of long-run objectives that arise as a result of the government's engagement in deficit spending. 1.3 Discuss whether tax revenue collection by the South African Revenue Services (SARS) changes with the recession. Explain your answer. 1.4 Why is the reduction in budget deficit important for boosting the South African economy?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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