Exam (elaborations)
ECS3709 Assignment 4 (COMPLETE ANSWERS) Semester 2 2024 - DUE 27 September 2024
- Course
- ECS3709
- Institution
- University Of South Africa
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ECS3709 Assignment 4(COMPLETE ANSWERS)
Semester 2 2024 - DUE 27
September 2024
100% GUARANTEEED
, ECS3709 Assignment 4 (COMPLETE ANSWERS)
Semester 2 2024 - DUE 27 September 2024
QUESTION 1 [15] Using Jordan, South Africa, and Nigeria
as case studies, select one country of your choice and
apply any two demand-side factors and two supply-side
factors to explain the relationship between
unemployment and economic growth in that country.
Make sure to indicate the references in your discussion
and provide the list of references at the end of your
essay. (15) Mark allocation: each factor earns 3 marks
including explanation leading to twelve (12) marks for the
discussion excluding referencing. Referencing will be
awarded a total of three (3) marks as follows: 2 marks for
intext citation; 1 mark for the correct list of references.
To approach this question, let's break down the relationship between unemployment and
economic growth in South Africa, using two demand-side factors and two supply-side factors.
Introduction
The relationship between unemployment and economic growth is a key issue in
macroeconomics, often explained by the concept of Okun’s law. This principle suggests that
when an economy experiences economic growth, unemployment should decrease, and vice
versa. However, in South Africa, the high unemployment rate persists even when the economy
shows growth, indicating a complex relationship influenced by both demand-side and supply-
side factors.
Demand-Side Factors
1. Aggregate Demand South Africa's aggregate demand (total demand for goods and
services in the economy) is a crucial demand-side factor. When there is increased
spending by consumers, businesses, and the government, it stimulates economic growth,
potentially reducing unemployment. However, in South Africa, aggregate demand has
often been constrained by high levels of poverty and inequality, which limit consumer
spending and prevent significant reductions in unemployment. The sluggish growth in
consumer demand, due to low wages and high living costs, hinders the economy’s ability
to create jobs, despite economic growth.
In-text citation: (Tregenna, 2019)
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