(a)
With reference to Fig. 1.1
- Compare the inflation rate in Russia for March 2015 with the rate in March 2020. [1]
- What change has there been in the price level over this period? [1]
- Explain what might have led to real wages in Russia falling between 2016 and 2018. [2]
(b)[4]
Explain whether school lunches provided free-of-charge by the Russian government would be classified as private goods or public goods.
(c)[6]
Assess, using aggregate demand and aggregate supply analysis, the likely effect of the changes shown in Table 1.1 on the rate of inflation in Russia.
(d)[6]
Discuss whether the ‘huge decrease in the price of oil’ and the fall in the value of the rouble might create more opportunities than threats for the Russian economy.