TYPE OF ASSESSMENT: SUMMATIVE ASSESSMENT

DURATION: 1 HOUR
MARKS: 50
TIME: 08:00
INSTRUCTIONS
1. Answer all questions in the question paper.
2. Use the numbering system used in the question paper.
3. Skip a line after each answer.
4. Write neatly and legibly.

QUESTION 1

1.1. State the correct answer for each of the following statements. Write down the answer next to
the question number on your answer sheet.
1.1.1. Occurs in economies that lost the ability to create new jobs.(2)
1.1.2. Consists of the governor of the Reserve bank, 3 deputy governors and another 3 members.
Their main aim is to determine an interest rate that will be consistent with meeting the
inflation target. (2)
1.1.3. An index that measures the price of fixed basket of consumer goods and services.(2)
1.1.4. The difference in the importance of items in an index is solved through weighted index
which reflects the relative importance of each them.(2)
1.1.5. Assesses the impact of changes in the relative weighting of production inputs.(2)
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QUESTION 2

2.1 Answer the following questions that follow.

2.1.1. Define the term inflation. (2)

2.1.2. Explain what will you do to lower the inflation rate in our country. (4)

2.1.3. Which institutions in South Africa make inflation figures available? (2)

2.1.4. Do we adhere to the inflation target set by the government? (2)

2.1.5. Distinguish between the different types of inflation. (6)

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QUESTION 3
3.1. Name any three fiscal measures to control inflation. (6)

3.2. Examine in detail the consequences of inflation. (8)

3.3. Broadly outline the inflation problem in South Africa. (6)

3.4 Analyse the causes of demand pull inflation. (4)

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