, Question Response
So, price stability has an effect on Yes, price stability affects consumer
consumer spending, which in turn spending. This is because during high
affects the economy in that the inflation, money is losing its value
industries will either produce more or (purchasing power) and consumers
less based on the current demand. And would require more amount of money to
if there is high inflation, ultimately buy a given unit of a commodity. Also,
consumers tend to save more and inflation discourages savings because
decrease spending which has a of rising prices of goods and services.
detrimental effect on the industries and
the population.
What is the inflation threshold, and who Inflation thresholds represent the
decides what this threshold needs to be, minimum or maximum level of inflation
or what are the determinants? that can be entertained by the economy.
This is usually determined by the
monetary authority (Central Bank or
Reserve Bank) of the country.
However, the threshold differs from
country to country depending on the
economic conditions.
The determinants are based on
economic principles (market
assessment).
Since we have a high unemployment Yes, with high unemployment rate, it
rate, it means we are underperforming means that South Africa is not fully
in the factors of production. Recently utilising its capacity and human power.
the unemployment rate was disputed,
who is correct and how do we Statistics South Africa (StatSA)
independently analyse unemployment conducts independent survey on the
rate? unemployment in South Africa.
However, I am not exactly clear with the
dispute that you are referring to.
If these trade tariffs go through, Yes, you are 100 percent correct. The
consumers in the US will be more wary tariffs will increase the import price of
of buying South African goods due to the good in the United States and this
the high cost of bringing them into the would reduce the quantity sold by
US. This will mean that exports from importers.
South Africa will decrease as a result.
So, when it comes to sustainable Yes, you are 100 percent correct. There
economic growth, I suppose that there is always a trade-off between increasing
is a certain level of industrialization that economic growth and protecting the
is required to achieve this but a balance environment.
needs to be made between the need for
growth and the protection of the
environment in the process.
So, price stability has an effect on Yes, price stability affects consumer
consumer spending, which in turn spending. This is because during high
affects the economy in that the inflation, money is losing its value
industries will either produce more or (purchasing power) and consumers
less based on the current demand. And would require more amount of money to
if there is high inflation, ultimately buy a given unit of a commodity. Also,
consumers tend to save more and inflation discourages savings because
decrease spending which has a of rising prices of goods and services.
detrimental effect on the industries and
the population.
What is the inflation threshold, and who Inflation thresholds represent the
decides what this threshold needs to be, minimum or maximum level of inflation
or what are the determinants? that can be entertained by the economy.
This is usually determined by the
monetary authority (Central Bank or
Reserve Bank) of the country.
However, the threshold differs from
country to country depending on the
economic conditions.
The determinants are based on
economic principles (market
assessment).
Since we have a high unemployment Yes, with high unemployment rate, it
rate, it means we are underperforming means that South Africa is not fully
in the factors of production. Recently utilising its capacity and human power.
the unemployment rate was disputed,
who is correct and how do we Statistics South Africa (StatSA)
independently analyse unemployment conducts independent survey on the
rate? unemployment in South Africa.
However, I am not exactly clear with the
dispute that you are referring to.
If these trade tariffs go through, Yes, you are 100 percent correct. The
consumers in the US will be more wary tariffs will increase the import price of
of buying South African goods due to the good in the United States and this
the high cost of bringing them into the would reduce the quantity sold by
US. This will mean that exports from importers.
South Africa will decrease as a result.
So, when it comes to sustainable Yes, you are 100 percent correct. There
economic growth, I suppose that there is always a trade-off between increasing
is a certain level of industrialization that economic growth and protecting the
is required to achieve this but a balance environment.
needs to be made between the need for
growth and the protection of the
environment in the process.
