O-LevelEconomicsGovernment and the macroeconomy2281/11 · Oct/Nov 2011 · Q281 Mark
Between December 2008 and August 2009, the Central Bank of South Africa cut the rate of interest from 12.5% to 7%. What effect would this action be expected to have on economic growth and unemployment?
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Aeconomic growth: decrease; unemployment: decrease
Beconomic growth: decrease; unemployment: increase
Ceconomic growth: increase; unemployment: decrease
Deconomic growth: increase; unemployment: increase
✓ Correct answer
C: economic growth: increase; unemployment: decrease
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