ENMB1617 Class Activity 1_Inflation&GDP&Unem 2023

INDIVIDUAL ACTIVITY 1
25 MARKS

QUESTION 1 [2 marks]

1.1 Statistics South Africa shows that the CPI Headline inflation (for all items) figures are:

May 2017 102.7

April 2018 107.0
May 2018 107.2

The inflation rate in the period May 2017 – May 2018 is …………… and the inflation rate
in the period April 2018 – May 2018 is ………………
A. 4.50%; 0.20%
B. 4.38%; 0.19%
C. 0.20%; 4.50%
D. 0.19%; 4.38%

QUESTION 2 [10 marks]

2.1 Professor Jim has a yearly budget for his primary school boy. Below is a table of the items
required at the beginning of each year:

Item Number of units Price 2017 Price 2018

required (R) (R)
Exercise books 17 23 30
Crayons 24 113 120
Pencils 64 76 99

What is the approximate inflation rate that Professor Jim faced in the period 2017-2018? Show
all your calculations. (10)

QUESTION 3 [7 marks]
3.1 The table below gives information regarding nominal GDP, GDP deflator, Real GDP, per
capita income and population of a given country.

Year Nominal GDP Real GDP (CPI) (2009 Real GDP per Population
(ZAR) (ZAR) = 100) capita (ZAR) (millions)
1990 …..A….. 8 952 66.8 …..E….. 0.44
2000 10 290 12 564 …..D….. 25 128 …..G…..
2009 14 418 …..C….. 100.0 26 700 0.54
2014 …..B….. 16 128 108.0 …..F….. 0.56

3.1.1 Calculate the missing values (A-F) in the table and write the corresponding answer next
to the letter. E.g. Q = 28 800. [7]

1
ENMB1617 Class Activity 1_Inflation&GDP&Unem 2023

QUESTION 4 [6 marks]

4.1 During July 2017 in Welkom South, 10 000 people were employed, 1 000 were unemployed
and actively searching for jobs, and 5 000 were discouraged workers. During August 2017
in Welkom South, 80 people lost their jobs and start searching, 20 people quit their jobs to
search for better paying jobs, 150 people were hired, 50 people withdrew from searching
for a job although willing to take up one if made available, and 40 people were fresh
graduates who entered the labour force.

4.1.1 Calculate the labour force; the unemployment rate using the expanded definition and
the unemployment rate using the strict definition for July 2017. [3]
4.1.2 Calculate the labour force; the unemployment rate using the expanded definition and
the unemployment rate using the strict definition for August 2017. [3]