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?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...

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Question

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?

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