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Discuss in detail the new economic paradigm in smoothing-out business cycles - NSC Economics - Question 5 - 2021 - Paper 1
Question 5
Discuss in detail the new economic paradigm in smoothing-out business cycles. Evaluate the South African government’s initiatives to reduce the economic downturn ca... show full transcript
Worked Solution & Example Answer:Discuss in detail the new economic paradigm in smoothing-out business cycles - NSC Economics - Question 5 - 2021 - Paper 1
Step 1
Evaluate the South African government’s initiatives to reduce the economic downturn caused by the Covid-19 pandemic.
Answer
Introduction
The South African government has implemented various initiatives in response to the economic downturn exacerbated by the Covid-19 pandemic. These initiatives are aimed at stimulating the economy and supporting businesses and individuals affected by the crisis.
Government Initiatives
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Financial Support Programs: Various grants and loans have been instituted to assist businesses, particularly those with lower turnover. This support ensures that businesses can continue operations and retain employees during difficult times.
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Social Grants: The government has increased social grants and introduced other social assistance to help households manage the economic impact, reducing poverty levels and stimulating consumer spending.
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Infrastructure Investment: Initiatives focused on infrastructure development aim to create jobs and boost economic activity in the long run.
Conclusion
These measures reflect the government's commitment to reducing the economic downturn caused by the pandemic, promoting recovery, and ensuring long-term stability.