4.3 Study the table below and answer the questions that follow. PUBLIC SECTOR'S BUDGET FRAMEWORK R BILLION REVISED MEDIUM-TERM ESTIMATES (MTEF) 2012/2013 2013/2014 2014/2015 2015/2016 Revenue 830 904 1 005 1 118 Percentage of GDP 27% 27% 27,8% 28% Expenditure 972 1 058 1 149 1 239 Percentage of GDP 32% 32% 31% 31% Surplus/Deficit -142 -153 -143 -12 Percentage of GDP -4% -4% -4% A Gross domestic product 2 995 3 301 3 622 3 997 [Adapted from The National Treasury: Budget Review] 4.3.1 What does the abbreviation MTEF stand for? 4.3.2 What is the international benchmark for budget deficits as a percentage of the GDP? 4.3.3 Calculate the budget deficit as a percentage of the GDP (A). 4.3.4 In your opinion, what can the government do to reduce the budget deficit? 4.4 Explain how the amplitude and trend line can be used in the forecasting of business cycles. (2 x 4) 4.5 How can taxation be used to stimulate employment in South Africa? (4 x 2)4.1 Answer the following questions. 4.1.1 Name TWO items in the financial account of the balance of payments. 4.1.2 What effect does inflation have on the poor? 4.2 Study the graph below and answer the questions that follow. EXCHANGE RATES MARKET FOR US DOLLARS D 52 R12 Exchange rate R/US$ R10 E1 52 S S D 30 40 50 Millions Quantity of dollars 4.2.1 Which supply curve indicates a decrease in the supply of dollars? 4.2.2 What type of exchange rate system is currently used in South Africa? 4.2.3 Explain the term exchange rate. 4.2.4 State ONE factor that could have led to an increase in the supply of dollars. 4.2.5 Use the above graph to explain the effect of the increase in the supply of US dollars on the R/US$ exchange rate. (2 x 2)3.3 Study the extract below and answer the questions that follow. OUR FUTURE: MAKE IT WORK - NDP 2030 The NDP aims to eliminate poverty and reduce inequality by 2030. South Africa can realise these goals by drawing on the energies of its people, growing an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society. [Source: www.nda.org.za] 3.3.1 What does the abbreviation NDP stand for? 3.3.2 What is meant by an inclusive economy? 3.3.3 Give a reason why it is important to eliminate poverty and reduce inequality in South Africa. 3.3.4 What impact does the Expanded Public Works Programme have on your local community? (2 x 2) 3.4 Briefly discuss employment as an economic indicator. (4 x 2) 3.5 How will the new demarcated special economic zones (SEZs) benefit regional development in South Africa? (4 x 2)3.1 Answer the following questions. 3.1.1 Name TWO indicators related to foreign trade. (2 x 1) 3. 1.2 What is the effect of increased investment spending on the economy? (1 x 2) 3.2 Study the table below and answer the questions that follow. LIFE EXPECTANCY TRENDS IN SOUTH AFRICA LIFE EXPECTANCY LIFE EXPECTANCY YEAR AT BIRTH AT BIRTH WITHOUT HIV WITH HIV 2002 64,2 53,4 2005 65.5 52,1 2008 66.3 56.0 2011 67.1 58,7 2014 67.9 61,2 3.2.1 Which year, according to the table above, Indicates the highest life expectancy without HIV? 3.2.2 Which institution is responsible for publishing life expectancy trends in South Africa? 3.2.3 Explain the term life expectancy. 3.2.4 What impact will HIV/Aids have on productivity levels? 3.2.5 In your opinion, what brought about the improvement in life expectancy from 53,4 years to 61,2 years? (2 x 2)