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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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 govemment'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
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 govemment'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 concludes 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: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 concludes 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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