1.18 a) Social cost b) Economic cost c) Political cost d) Distribution cost The costs to the hospitality industry being presented in the above quote are... (4 marks) 1.19 According to Keynesian economists, during a boom in economic activity... {4 marks) a) money supply should be increased. b) interest rates should be cut. 8) government should increase its spending. d) tax rates should be raised. 1.20 Interest rates are usually during the latter stages of a downswing in the South African business cycle. An improvement in economic activity is normally triggered by an increase in . Manufacturing production rises during an upswing and in the latter stages of the upswing, ination, and interest rates . (4 marks) a) low; exports; increase b) low; consumption; fall c) low; imports; fall d) high; exports; increase 1.21 Which one of the following is not a supply factor in economic growth? (4 marks) a) Consumption spending b) Natural resources c) Labour d) Capital