ECS1601 ASSIGNMENT 4 2025
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY OF ECS1601.
THIS REPORT IS INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH
THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD STARTING POINT AS IT
WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO
ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS
SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR DISCUSSION BY
OTHER AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM
MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF THE ANSWERS
CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER
GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE
IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION
PREPARATION, RESEARCH AND RESEARCH PROPOSALS, DISSERTATION
EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ,
UP etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 or
email
, ECS1601 ASSIGNMENT 4 2025
Question 1
To support economic resilience in Mitchells Plain, interventions must inject money into
the circular flow and stimulate local production. Two highly effective interventions
would be:
Government Investment in Local Infrastructure (Injection - Investment 'I')
A spending-led program of upgrading basic infrastructure (i.e., water, electricity, public
space) and human capital investment in the form of targeted skills development. This
puts money directly into circulation by creating jobs and income locally (Factor
Payments). The upgraded infrastructure and skilled workforce subsequently raise
productivity (one of the major drivers of long-term economic growth), making local
companies more competitive and resilient to shock.
Support for Local Enterprise Development (Stimulating Production)
Implementing grant and low-interest loan facilities for SMMEs, as well as a "buy local"
policy. This increases the income of local enterprises (Business Revenue), which
allows them to expand and hire more locals (increasing Factor Payments to
households). This keeps spending in the local economy (reducing Leakages such as
imports to elsewhere), makes the local economy more robust, and extends the
economic base, making it less vulnerable to falling off elsewhere.
Question 2.1: Why this is not good for South Africa/Lesotho (AD-AS Model)
From the perspective of the AD-AS model, the imposition of high US tariffs (30% on
South Africa, 50% on Lesotho) is a significant negative shock, primarily to Aggregate
Demand (AD) for these economies.
1. Impact on Net Exports (NX): A tariff makes South African and Basotho goods
more expensive for American consumers. This leads to a decrease in the
quantity of exports demanded by the USA. Since Net Exports (Exports -
Imports) are a direct component of Aggregate Demand (AD = C + I + G + NX),
a fall in NX causes the entire AD curve to shift to the left.
2. Shift in the AD Curve: The leftward shift of the AD curve from AD1 to AD2
demonstrates this decrease in total planned spending on domestic goods and
services at every price level.
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY OF ECS1601.
THIS REPORT IS INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH
THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD STARTING POINT AS IT
WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO
ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS
SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR DISCUSSION BY
OTHER AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM
MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF THE ANSWERS
CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER
GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE
IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION
PREPARATION, RESEARCH AND RESEARCH PROPOSALS, DISSERTATION
EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ,
UP etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 or
, ECS1601 ASSIGNMENT 4 2025
Question 1
To support economic resilience in Mitchells Plain, interventions must inject money into
the circular flow and stimulate local production. Two highly effective interventions
would be:
Government Investment in Local Infrastructure (Injection - Investment 'I')
A spending-led program of upgrading basic infrastructure (i.e., water, electricity, public
space) and human capital investment in the form of targeted skills development. This
puts money directly into circulation by creating jobs and income locally (Factor
Payments). The upgraded infrastructure and skilled workforce subsequently raise
productivity (one of the major drivers of long-term economic growth), making local
companies more competitive and resilient to shock.
Support for Local Enterprise Development (Stimulating Production)
Implementing grant and low-interest loan facilities for SMMEs, as well as a "buy local"
policy. This increases the income of local enterprises (Business Revenue), which
allows them to expand and hire more locals (increasing Factor Payments to
households). This keeps spending in the local economy (reducing Leakages such as
imports to elsewhere), makes the local economy more robust, and extends the
economic base, making it less vulnerable to falling off elsewhere.
Question 2.1: Why this is not good for South Africa/Lesotho (AD-AS Model)
From the perspective of the AD-AS model, the imposition of high US tariffs (30% on
South Africa, 50% on Lesotho) is a significant negative shock, primarily to Aggregate
Demand (AD) for these economies.
1. Impact on Net Exports (NX): A tariff makes South African and Basotho goods
more expensive for American consumers. This leads to a decrease in the
quantity of exports demanded by the USA. Since Net Exports (Exports -
Imports) are a direct component of Aggregate Demand (AD = C + I + G + NX),
a fall in NX causes the entire AD curve to shift to the left.
2. Shift in the AD Curve: The leftward shift of the AD curve from AD1 to AD2
demonstrates this decrease in total planned spending on domestic goods and
services at every price level.
