MACROECONOMICS

Question 7 (Marks: 20) Q.7.1 Use the table below to answer the questions that follow: YEAR 2019 2018 2017 2016 CPI 213.8 212.2 202.6 200.2 Q.7.1.1 Calculate the inflation rate for the year 2018. (3) Q.7.1.2 Does the inflation rate you calculated above fall into the South Africa (2) inflation target? Q.7.2 Use the following composition of expenditure for the economy of a country named the Republic of Tapuwa, for the year ended 2019 to answer the questions below: COMPONENT R millions Consumption expenditure (C) 9 000 Investment (1) 6 500 Government spending (G) 7 000 Exports (X) 1 800 Imports (Z) 2 400 Depreciation 700 Foreign payment to the rest of the 300 world Foreign payment from the rest of the 250 world Show all calculations and formulae. Q.7.2.1 Calculate the value of the country's GDE (Gross Domestic (3) Expenditure).[1.12.2 Compute the value for the country's GDP [Gross Domestic Product] at market price. [1.12.3 Determine the value of the country's NNI {Net National Income] at market price. [1.12.4 If it is predicted that the IEDP will increase to 22 IiZICIEII in ZDZU, calculate the growth rate between 2019 and Zl. [1.12.5 The measure of GDP for economic growth is not always perfect. Describe any two problems that are associated with GDP as a measure of economic growth. [2] i3] i3] i4]