(a)[8]
Explain how the causes of cost-push inflation differ from those of demand-pull inflation.
(b)[12]
Discuss the most serious problems that an economy faces when inflation is high and rising.
Economics 9708 · AS & A Level · Balance of payments
Balance of payments — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Understanding of the meaning of 'inflation' (1 mark), together with reference to how aggregate demand and aggregate supply are related (1 mark). (KU: up to 2 marks)” …
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