The unemployment rate in South Africa currently sits at 32.6% and this is mostly attributed to

Covid- 19. On the 25th July 2021, President Cyril Ramaphosa announced that the R350 Covid-19 relief grant would be reinstated in South Africa. This grant is intended for those who are unemployed in South Africa.

1. a) Discuss the impact of an increase in the unemployment rate on national output. Use diagrams to substantiate your answer [15 marks]
2. b) Discuss the impact of this grant, on the natural rate of unemployment. [10 marks]