Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

(a)
  • Identify the overall change in South Africa’s unemployment rate from January 2020 to October 2022. [1]
  • Compare the movement in the unemployment rate in South Africa from January 2020 to January 2022 with the movement from January 2022 to October 2022. [1]
(b)[2]

Identify one possible effect on firms in South Africa and one possible effect on the government in South Africa of such a high unemployment rate.

(c)[4]

Consider whether further falls in the value of the South African rand might reduce the current account deficit of the balance of payments.

(d)[6]

Assess the extent to which closer membership of the AfCFTA may help South Africa achieve the growth needed to ‘escape from its economic difficulties’.

(e)[6]

Assess the extent to which the policies proposed to improve infrastructure and reduce the high unemployment rate in South Africa are likely to cut income inequality.

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