Question 1

1.1 Explain the effectiveness of the exchange rate regime being used in terms of achieving macroeconomics objectively in South Africa.

1.2 Discuss any four macroeconomics objectives which can be used to judge the performance of the economy.

Question 2

Many analysts in both developed and developing worlds have heavily criticized the cases of monopolies.

Discuss using relevant examples whether it is a good policy for the governments to completely eliminate monopoly power.

Question 3

3.1 Inflation is now a key challenge in many developing countries in Africa.

Explain the concept of cost-push and demand-pull inflation with aid of diagrams. Use a country of your choice to exemplify the effects.

3.2 Evaluate the best policies you consider government should use to reduce inflammation in South Africa

Question 4

World Bank reports 2011 shows the lowest per capita income levels being in Africa.

Provide a detailed analysis of the policies that the government could use to increase the living standards of the people.