EXCELCENTRE LEARNING INSTITUTE 061 043 9805
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
Table of Contents
QUESTION 1: Keynesian and Chicago Economic Thinking ....................................... 5
(a) Keynesian Demand Management Theory ............................................................. 5
(b) Chicago School Perspective and Friedman’s View ............................................... 6
QUESTION 2: Measurement of Government Spending Between Countries .............. 7
2.1 Diagram: General Government Final Consumption Expenditure (% of GDP) ...... 7
2.2 Comparison and Explanation of Trends ............................................................... 7
2.2.1 Government Expenditure Trends in South Africa .............................................. 7
2.2.2 Government Expenditure Trends in Burundi ..................................................... 8
2.2.3 Comparative Analysis of Trends........................................................................ 8
QUESTION 3: Application of Chicago Economic Thinking ......................................... 9
3.1 Identification and Explanation of Recessionary Year(s) ....................................... 9
3.2 New Classical Macroeconomics (Mark I) Policy Response ................................ 10
The South African Reserve Bank (SARB) ................................................................ 12
Functioning of the SARB .......................................................................................... 12
Challenges Facing the SARB ................................................................................... 12
The National Treasury .............................................................................................. 13
Functioning of the National Treasury........................................................................ 13
Challenges Facing the National Treasury ................................................................ 14
References ............................................................................................................... 15
Education is the most powerful weapon which you can use to change the world
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
Table of Contents
QUESTION 1: Keynesian and Chicago Economic Thinking ....................................... 5
(a) Keynesian Demand Management Theory ............................................................. 5
(b) Chicago School Perspective and Friedman’s View ............................................... 6
QUESTION 2: Measurement of Government Spending Between Countries .............. 7
2.1 Diagram: General Government Final Consumption Expenditure (% of GDP) ...... 7
2.2 Comparison and Explanation of Trends ............................................................... 7
2.2.1 Government Expenditure Trends in South Africa .............................................. 7
2.2.2 Government Expenditure Trends in Burundi ..................................................... 8
2.2.3 Comparative Analysis of Trends........................................................................ 8
QUESTION 3: Application of Chicago Economic Thinking ......................................... 9
3.1 Identification and Explanation of Recessionary Year(s) ....................................... 9
3.2 New Classical Macroeconomics (Mark I) Policy Response ................................ 10
The South African Reserve Bank (SARB) ................................................................ 12
Functioning of the SARB .......................................................................................... 12
Challenges Facing the SARB ................................................................................... 12
The National Treasury .............................................................................................. 13
Functioning of the National Treasury........................................................................ 13
Challenges Facing the National Treasury ................................................................ 14
References ............................................................................................................... 15
Education is the most powerful weapon which you can use to change the world
