1. SA Macro-economic Environment Flashcards
A contractionary fiscal policy entails a decrease in the demand for goods in the economy by (1)…. A result of such a policy is that the budget deficit (2)….
(1) decreasing government spending and/or increasing taxes
(2) increases
An expansionary fiscal policy entails an increase in the demand for goods in the economy by (1)…. A result of such a policy is that the budget deficit (2)….
(1) increasing government spending and/or decreasing taxes
(2) decreases
An … is someone who is willing and able to work but who does not have a job.
unemployed person
Contractionary monetary policy entails an (1)…. This therefore increases (2)…
(1) increase in the repo rate
(2) interest rates and cost of credit
Economic growth takes place when the (1)… of goods and services in an economy (2)…
(1) total output (production)
(2) increases
Expansionary monetary policy entails a (1)… This therefore decreases (2)…
(1) decrease in the repo rate
(2) market interest and cost of credit
Expenditure on GDP includes (1)… and excludes (2)…, it is all spending on what we as a country produce.
(1) exports
(2) imports
GDP is a … because it includes the total amount of goods and services produced, some of which are simply replacing goods that have depreciated or worn out.
gross measurement
GDP measures the goods and services produced inside the borders of a country by …
both the citizens and foreigners
Gross Domestic Expenditure total value of spending within the borders of a country, including imports but …, since spending on exports takes place outside the borders of the country.
excluding exports
In addition, children between the ages of … are protected from work that is “exploitative, hazardous, inappropriate for their age, detrimental to their schooling, or detrimental to their social, physical, mental, spiritual, or moral development”.
15 and 18
Inflation is defined as …
the sustained rise in the general level of prices
Intermediary goods is goods used in the production of products meant for …
end users
It is a criminal offence to employ a child under the age of … in South Africa
15 years
Marginal propensity to consume = the portion of household income that is spent on …
goods and services
Monetary policy involves all deliberate actions by the monetary authorities to influence the …
monetary aggregates, the availability of credit, interest rates and exchange rates
Nominal GDP is the sum of the quantities of final goods and services produced, multiplied by their …
current price
Only … are included in GDP.
final goods and services
Real GDP is the sum of the quantities of final goods and services produced, multiplied by the …
base price
Structural unemployment occurs when there is a mismatch between workers’ …
qualifications and job requirements
The demand for goods which consist of (1)… , (2)… , and (3)… are important factors in creating employment opportunities in South Africa.
(1) consumer spending
(2) investment spending
(3) government spending
The fiscal policy is a government’s policy that looks at the nature and composition of (1)… to achieve specific (2)…
(1) government spending, taxation and borrowing
(2) economic goals
The GDP is the total value of (1)… produced within the (2)… during a (3)…
(1) all final goods and services
(2) boundaries of a country
(3) particular period (usually one year)
The type of unemployment in SA is …
structural unemployment
The …. policy plays an important role in influencing the demand for goods.
fiscal
To qualify as economic growth the growth needs to be in (1)… , therefore (2)… and figures needs to be adjusted for (3)…
(1) real terms
(2) inflation needs to be excluded
(3) population growth
What is the strict definition of unemployment?
Those being 15 years and older:
- not in paid employment
- were available for paid employment 7 days preceding interview
- took steps during 4 weeks preceding interview to find employment
You have two stabilization policies namely?
- Fiscal policy
2. Monetary policy
You have two types of fiscal policy namely?
- Expansionary fiscal policy
2. Contractionary fiscal policy
… are responsible for consumer spending and a change in their spending behaviour, even a small one, will result in a change in the demand for goods, output and income
Households
… is when the total real production or income grows faster than the population.
Positive economic growth
