1. Price stability is the primary mandate of the South African Reserve Bank (SARB), and it is primarily carried out through inflation targeting.

a)What instrument does the SARB use to target inflation, and how does this mechanism affect the whole economy? Use your AD-AS models in your discussion.

A relationship exists between inflation and unemployment. As a leader, what is your view of inflation targeting and how does it impact your organisation?

2.In March 2018, African countries signed a landmark trade agreement, the African Continental Free Trade Area Agreement (AfCFTA), which commits 54 African countries to remove tariffs on 90 percent of goods, progressively liberalise trade in services, and address a host of other non-tariff barrier conditions.

a)Using either South Africa, Zimbabwe or Nigeria as a case study, show the impact of this trade agreement on the economy, particularly the trade balance.

b) As a leader in your organisation, you have been asked to present the main features of the AfCFTA. What are its key benefits and drawbacks? How do these relate to your organisation?

3. Covid-19 is a global pandemic that has impacted all economies in the world. Using your own economy as a reference,

a) Discuss the performance of the economy before and post Covid-19, with particular reference to national output, employment and inflation. Use your AD-AS model in your discussion [20 marks]

b) Discuss the measures that your government has taken as a response to Covid-19. As a leader in your country's economic advisory team, have these measures been effective? What else could the government have done?