Macroeconomics is a branch of modern economics which studies the functioning of an economy as a whole. The approach used in macroeconomics is that of aggregates rather than individual economic units. Macroeconomics therefore illustrates the holistic picture of an economy by examining variables at aggregate level. The scope of macroeconomics as a specific field of study expands to the extent in which international factors are incorporated. The inclusion of the foreign sector provides an enhanced understanding of the economic situation of a country as each country forms part of the global economy. Aggregate variables in the context of macroeconomics act as performance indicators of the economy as a whole and are analysed by policymakers in facilitating decision-making. Furthermore, the role of policymakers in a macroeconomic context is of great importance. The impact of policy decisions on an economy as a whole represents a significant area in macroeconomic research. Suppose that you are hired as an economist to advise South African policymakers on the performance of the economy. In order to evaluate the economic performance, the following data is provided: Economic indicator 2018 2019 Real GDP 4 134 781 4 237 249 Nominal GDP 5 696 118 6 001 135 Gini coefficient 0.6 0.62 Labour force 5 884 433 6 139 265 Population 6.5 million 6.51 million Number of unemployed 1 588 796 1 780 356 Balance on current account -118 234 -153 176 Balance of financial account (+)109 961 (+)118 457 Note: Monetary values expressed in R millions. You are required to evaluate the five main macroeconomic objectives, namely economic growth, full employment, price stability, external stability and the equitable distribution of income

1.4. Discuss the value and measurement used in assessing equitable income distribution in South Africa. (2)

1.5. Explain what the values of the current account and financial account imply for South Africa. (2)