Answer the questions below

1. Explain the differences between real and nominal GDP.

2. Why is it important to know the growth in real GDP?

3. What is the current real GDP per person in South Africa? How has this changed over the past 10 years?

4. Using the rule of 70 estimate how long it will take for real GDP to double if the growth rate is 6%.

5. What factors have impacted on South Africas economy over the past 10 years? What impact has this had on GDP?

6. South Africa compares relatively favourably to other countries in terms of GDP. What does our government need to do to increase our position in the world ranking?

7. Argue for the proposition demand determines the level of national output.

8. What is the key indicator used by the Reserve Bank to determine the level of interest rates?

9. Discuss why inflation is a destructive economic variable.