Fiscal Policy
South Africa's fiscal policy has helped the millions that deal with poverty with spending on social grants. "About 70% of outlays on social grants and 54% of spending on education and health go to the poorest half of the population of South Africa." (WorldBank) They manage to do this by increasing the taxes on the rich of the country.
The Aggregate as shown below which demonstrates the sum of all the expenditures. This will shift to the right since there is such a high number of unemployment the Demand to solve it will always rise. But over time this will not change the aggregate so that will stay the same. |