Economics 9708 · AS & A Level · Economic growth
Apply aggregate demand and aggregate supply analysis to distinguish cost-push from demand-pull causes of inflation.
Distinguish between the domestic consequences and the external consequences of inflation, then assess which you regard as the more serious for an economy.
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge and understanding of cost-push inflation together with application of aggregate demand and aggregate supply analysis to explain it and to differentiate this type of inflation from demand-pull inflation. (Up to 4 marks)” …