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Economics Grade 12 Notes for 2021 on pdf
Economics Grade 12 Notes for 2021 on pdf We have collated and collected Economics Grade 12 Notes for 2021 on this page in pdf and word printable formats.
CONTEMPORARY ECONOMIC ISSUES
INFLATION
- Inflation
- Description: A sustained and significant increase in the general price level over a period of time; and a simultaneous decline in the buying power of money.
- Ways to measure inflation
- Indexes – two indexes are used Consumer Price Index (CPI) and Producer Price Index (PPI).A price index is compiled by using the prices of a representative range of goods and services which are recorded on a regular basis.
- Weighting – Each item in the basket of goods and services is given a weight. This weighted index reflects the importance of an item in the basket. The higher the weight the more important is the item.
- Inflation rate: The inflation rate is determined by using changes in the CPI and/or PPI index. The figures for each month are compared to the corresponding month in the previous year
- Types of inflation
- Consumer inflation:
– Headline inflation– unadjusted CPI rate; (is measured by CPI); consists of a shopping basket of goods and services of an ordinary South African household in urban areas.
It is used for inflation targeting, meaning when it is above 6% SARB may increase interest rates.
– Core inflation– excludes item in the CPI basket that have volatile prices (continually changing) and those affected by government intervention. Examples vegetables; fresh and frozen meat and fish; interest rate on mortgage bonds; VAT and assessment rates.
Core inflation is lower than headline inflation and is often stable.
– Administered prices– prices that are controlled by the government through authorities. e.g. electricity (NERSA),
- Producer inflation: Producer price index (PPI) measures prices of domestically produced goods.
Difference between Consumer Price Index and Producer Price Index
Consumer Price Index | Producer Price Index |
Pertains to cost of living | Pertains to cost of production |
Basket consists of consumer goods and services | Basket consists of goods only |
Capital and intermediate goods are excluded | Capital and intermediate goods are included |
Prices include VAT | Prices exclude VAT. |
Interest rates are taken into account | Interest rates are excluded. |
Prices of imported goods are not shown | Prices of imported goods are shown explicitly |
Downloadable Economics Grade 12 Notes
- Economics Worksheet 1 + Answers
- Worksheet 4 + Answers
- Worksheet 5 + Answers
- Self-Assessment Week 1+ Answers
- Worksheet 7 + Answers
- Worksheet 8 + Answers
- Worksheet 9+ Answers
- Worksheet 15 + Answers
- Worksheet 16
- Worksheet 20 + Answers
- Worksheet 21 + Answers
- Worksheet 22 + Answers
- PowerPoint- Protectionism _ Free Trade
- Paper 2 Questions + Answers
- Contemporary Economic Issues Revision Booklet+ Answers
- Worksheet 12 5 Micro-economics + Answers
- Revision Booklet – Economic Pursuits
- Solution Booklet – Economic Pursuits
- Worksheet 13 5 Microeconomics + Answers
- Worksheet 14 5 Microeconomics + Answers
- Worksheet 15 5 Microeconomics + Answers
- Worksheet 26 5 + Answers
- Worksheet 4 6 + Answers
- Perfect competition
- Macro-economics Presentation
- Worksheet 10 6 20 + Answers
- Monopoly Presentation
- Oligopoly Presentation
- Work sheet 17 6 20 + Answers
- Work sheet 24 6 + Answers
- Work sheet 25 6 + Answers
- Work sheet 1 7 + Answers
- Work sheet 2 7 + Answers
- Work sheet 8 7 20 + Answers
- Work sheet 9 7 20 + Answers
- Work sheet 15 7 + Answers
- Work sheet 16 7 + Answers
- Worksheet 30 7 20 + Answers
- Worksheet 05 8 20 + Answers
- Work sheet 21 8 20 + Answers
- Work sheet 26 8 20 + Answers
- Work sheet 27 8 20 + Answers
- Worksheet 08 09 20 + Answers
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