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 PresidentPhumzile Mlambo-Ngcuka in February 2006. After research and discussion with stakeholders, governmentidentified six "binding constraints on growth that needed to be addressed so as to progress in its desire forshared growth and to achieve its target of halving unemployment and poverty between 2004 and 2014. Thiscould be achieved if the economy grew at an average rate of at least 4.5% in the period to 2009, and by anaverage of 6% in the period 2010 to 2014.These binding constraints were:deficiencies in govemment's capacitythe volatility of the currencylow levels of investment infrastructure and infrastructure servicesshortages of suitably skilled graduates, technicians and artisans• insufficiently competitive industrial and services sectors and weak sector strategiesinequality and marginalisation, resulting in many economically marginalised people being unableto contribute to and/or share in the benefits of growth and developmentSource: https://www.gov.za/sites/default/files/gcis document/201409/asgisa-2007.pdfAccessed: 19/08/21 Which macroeconomic objective is not being explicitly pursued in the above binding constraints?a) Balance of payments stabilityb) Full employmentc) Price stabilityd) Distribution of income1.7 Given the binding constraints above, which of the following sources of economic growth is the South Africangovernment NOT aiming to make use of?a) Productivityb) Human capitalc) Labour supplyd) Increases in aggregate demand1.8 Given the information in the extract, the Simple Keynesian Macroeconomic Model concludes the followingabout the South African economy in 2006.a) Excess demandb) Excess supplyc) Macroeconomic equilibriumd) Aggregate spending is less than output

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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

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 5P

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