SCHOOL OF BUSINESS STUDIES

2022 SEMESTER 1 ASSIGNMENT 1

COURSE: MACROECONOMICS

COURSE CODE: BBAC 112

DUE DATE: 25 MARCH 2022

LECTURER: FUNSIWE MZYECE

1. INDICATE YOUR NAME, STUDENT NUMBER, COURSE CODE AND

TITLE INCLUDING ASSIGNMENT NUMBER ON THE COVER PAGE
WHICH HAS A ZAOU LOGO
2. READ THE INSTRUCTIONS AND THE QUESTION (S) CAREFULLY
BEFORE ATTEMPTING TO ANSWER.
3. COPY DOWN THE ASSIGNMENT QUESTION BEFORE YOU ANSWER.
REMAIN FOCUSED
4. THE ASSIGNMENT SHOULD BE ORIGINAL, WELL-RESEARCHED,
CITED REFERENCED AND FLOW LOGICALLY AND A MICROSOFT
WORD DOCUMENT
5. REPEAT. ALWAYS CITE AND ACKNOWLEDGE SOURCES OF
INFORMATION, FAILURE TO WHICH YOU LOSE A LOT OF MARKS.
NO PLAGIARISM
6. THIS ASSIGNMENT CARRIES 25 MARKS, USE 2000 WORDS, + OR –
500 WORDS
QUESTION ONE

i. Analyse the causes of inflation in an economy 5 marks

ii. Explain how a government can use both fiscal and monetary policies to control
inflationary pressures in an economy? 10 marks

Question Two

i. Explain briefly the ‘Law of Comparative advantage’. 3 marks

ii. In spite of the many advantages of free trade, governments exercise protectionism
policies. Discuss the forms of protectionism 7 marks