Question 2 (20 marks) Main Bulletin: The Real Economy Bulletin - Second Quarter 2021 Gross domestic product The GDP grew by 1.2% in the second quarter of 2021, up from the (revised) figure of 1% in the first quarter. The economy recovered 19% over the past year from the sharp COVID-induced downturn in the second quarter of 2020. Still, as of the second quarter, it remained 1.4% lower than before the pandemic. The data for the GDP do not, however, reflect either the violent unrest in July or the impact of the severe third wave of the pandemic in mid-September. Employment Despite the relatively rapid growth in GDP, the Quarterly Labour Force Survey found that total employment flattened out from the first to the second quarter of 2021. South Africa had recovered almost a million jobs since the second quarter of 2020, but total employment was still 8% below pre-pandemic levels. In the second quarter, lower skilled and informal workers saw large job gains, but they were offset by losses for semi-skilled and skilled employees. This outcome likely reflected reduced access to the UIF's temporary employee relief scheme. Source: TIPS (2021). [Online] https://www.tips.org.za/manufacturing-data/the-real-economy- bulletin/quarterly-bulletin/item/4204-the-real-economy-bulletin-second-quarter-2021 [Accessed on: 20 October 2021] 2.1 How can government boost economic growth and reduce unemployment in South Africa without compromising its fragile debt and budget position? (5) 2.2 Explain why the employment trend among low-skilled employees is still vulnerable to economic crises. (5) 2.3 Explain whether a simultaneous reduction in the budget deficit and fiscal stimulus would be possible. Motivate your answer. (5) 2.4 Explain, supported by an example, how a sustainable government project, or programme, may boost the South African economy during economic recession