, ECS1601 Assignment 4 (COMPLETE ANSWERS)
2025 - DUE 15 September 2025; 100% TRUSTED
Complete, trusted solutions and explanations.
Question 1 — [7 marks | ~100 words]
Two effective interventions for economic resilience in
Mitchells Plain:
1. Local procurement + SMME support (short-run
injection): the municipal/provincial government and
large buyers (hospitals, schools) ring-fence a portion of
purchases for local spazas, contractors and SMMEs,
paired with micro-credit and business support. This
raises local incomes → higher consumption (AD rises),
creates demand-multiplier effects in the circular flow
and reduces leakages to outside areas.
2. Public works + skills training (supply & demand): a
targeted public-works programme (road/energy
upgrades) plus vocational training increases short-term
employment (boosting AD) and raises productive
capacity (rightward shift of AS) supporting sustainable
growth and lower unemployment.
Question 2 — [18 marks | ~450 words]
2.1 Why this is bad for South Africa / Lesotho (AD–AS
explanation) — [8 marks]
2025 - DUE 15 September 2025; 100% TRUSTED
Complete, trusted solutions and explanations.
Question 1 — [7 marks | ~100 words]
Two effective interventions for economic resilience in
Mitchells Plain:
1. Local procurement + SMME support (short-run
injection): the municipal/provincial government and
large buyers (hospitals, schools) ring-fence a portion of
purchases for local spazas, contractors and SMMEs,
paired with micro-credit and business support. This
raises local incomes → higher consumption (AD rises),
creates demand-multiplier effects in the circular flow
and reduces leakages to outside areas.
2. Public works + skills training (supply & demand): a
targeted public-works programme (road/energy
upgrades) plus vocational training increases short-term
employment (boosting AD) and raises productive
capacity (rightward shift of AS) supporting sustainable
growth and lower unemployment.
Question 2 — [18 marks | ~450 words]
2.1 Why this is bad for South Africa / Lesotho (AD–AS
explanation) — [8 marks]
