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Read the statement below and answer the questions that follow:
"From the first to the second quarter, the number of people employed in the formal, non-agricultural sector fell by 86 000 to around 9.57 million, the latest Quarterly Employment Statistics (QES) survey released by Statistics South Africa"
1. Speculate on the impact of the above statement on the South African economy.
2. Given the current situation in South Africa, identify and explain the type of unemployment most likely to prevail.
3. Highlight the main stages of a business cycle and motivate what stage the South African economy is likely to be at currently.
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