Economics grade 12

• Inflation


  Increase in the general price level of goods and services in an economy over time
• Measuring inflation


  1. Define

  2. Explain

  3. Examine
• Types and characteristics of inflation

  • Demand-pull inflation
  • Cost-push inflation
  • Hyperinflation
  • Stagflation
• Causes of inflation


  • Demand-pull factors
  • Cost-push factors
• Measures to combat inflation

  • Monetary policy
  • Fiscal policy
  • Incomes policy
• Tourism


  Travel for leisure, business and other purposes
• Purposes of tourism


  • Leisure
  • Business
  • Other
• Measuring tourism


  • Number of tourists
  • Tourist expenditure
  • Length of stay
• Reasons for growth of tourism

  • Increased disposable income
  • More leisure time
  • Improved transport and communication
  • Globalisation
• Effects of tourism


  • Economic
  • Social
  • Environmental
• Benefits of tourism


  • Foreign exchange earnings
  • Employment creation
  • Multiplier effect
  • Tax revenue
  • Infrastructure development
• South African tourism profile
• Tourism policy suggestions
• Environmental sustainability


  Meeting the needs of the present without compromising the ability of future generations to meet their own needs
• Measures to ensure sustainability

  • Renewable energy
  • Recycling
  • Reducing waste
  • Protecting biodiversity
• Open economy circular flow model

  • Concepts
  • Complete four sector diagram
  • Participants: Households, Business sector, Government, Foreign sector
  • Real and money flows
  • Injections (I + G + X)
  • Leakages (S + T + M)
  • Equations e.g. Y = C + I + G + (X - M)
  • Markets: Factor market, Market for goods and services/products, Financial Market, Foreign market/foreign exchange
  • Flows through different markets: production, income and spending
• National account aggregates


  Measures of economic performance of a country
• Measuring National Account Aggregates

  • Production GDP(P) - GDP
  • Income GDP(I) - GDI
  • Expenditure GDP(E) - GDE
• National Account Conversions


  • System of National Accounts (SNA)
  • Nominal and Real prices
  • Basic prices
  • Factor cost
  • Market prices
  • Net Figures
  • Domestic and National figures
  • Disposable national income
• Definitions and explanations of national account aggregates and conversions
• Identification of participants, flows, injections and leakages from a circular flow diagram
• In-depth discussion of the inter-relationships between participants in the circular flow
• Drawing and interpreting a circular flow diagram
• Discussion of an economy in equilibrium
• Leakages (L)


  S + T + M
• Equations


  Y = C + I + G + (X - M)
• Markets


  • Factor market
  • Market for goods and services/products
  • Financial Market – Money and Capital
  • Foreign market/foreign exchange
• Flows through different markets (production, income and spending)
• National account aggregates and conversions

  • Production GDP(P) – GDP
  • Income GDP(I) – GDI
  • Expenditure GDP(E) – GDE
• National Account Conversions

  • System of National Accounts (SNA)
  • Nominal and Real prices
  • Basic prices
  • Factor cost
  • Market prices
  • Net Figures
  • Domestic and National figures
  • Disposable national income
• Definitions and explanations
• Identification of participants, flows, injections and leakages from a diagram
• In-depth discussion of the inter-relationships between participants
• Draw and interpret a circular flow diagram
• Justify the equality: L = J and illustrate its component elements
• Explain the relationship between markets within the FOUR SECTOR model
• Link the operation of financial and foreign exchange markets to the other participants of the circular flow
• Identify from table
• Briefly discuss the THREE methods
• Explain the concepts used in national accounts