Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

(a)[8]

With the aid of AD/AS diagram(s), explain cost-push inflation and demand-pull inflation in an economy, and consider the circumstances in which one may be more harmful than the other.

(b)[12]

Assess whether monetary policy or supply-side policy is likely to be more successful in reducing the rate of inflation in an economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A clear grasp of the causes of inflation in an economy, shown by an accurate diagram with axes correctly labelled (price level and real output).” …

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI