Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

(a)[8]

Explain what inflation means, and use diagrams to show how it can emerge both from a shift in the aggregate demand curve and from a shift in the aggregate supply curve.

(b)[12]

Discuss whether the domestic effects of inflation are more serious than the external effects for an economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge and understanding of inflation defined as a continuous/sustained increase in the overall/average level of prices (2 marks).” …

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