Describe the pattern in the annual inflation rate of Bangladesh from 2009 to 2019.
Explain why price changes in Bangladesh’s food and non-food sectors are handled differently when the CPI is calculated.
Explain one domestic consequence and one external consequence for Bangladesh of having ‘a relatively high rate of inflation’.
Analyse, with the help of aggregate demand and aggregate supply diagrams, how rising wages can lead to both demand-pull and cost-push inflation in Bangladesh.
‘However, there is always the chance that strict monetary policies may do more harm than good to an economy, when set beside the possible use of fiscal policy.’ Discuss whether monetary policy or fiscal policy is more likely to be effective in controlling inflation.