(a)[2]
Describe what has happened to consumer prices in the Eurozone between March 2021 and February 2022.
(b)[2]
With the help of an aggregate demand and aggregate supply diagram, identify the main type of inflation in the Eurozone.
(c)[4]
Consider the extent to which the shortage of supply of labour in the Eurozone may have contributed towards the increasing rate of inflation.
(d)[6]
Using the concept of price elasticity of demand, assess the relative impact on poorer households, including those on fixed incomes, of rising prices of food and energy.
(e)[6]
Assess the advantages and disadvantages of the ECB substantially increasing the interest rate to control rising inflation.