Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

(a)[8]

In an economy you know, or in your own economy, explain three causes of inflation and decide which one is likely to matter most in 2025.

(b)[12]

Assess whether supply-side policy or demand-side policy is the more effective way to reduce this inflation.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Inflation is a sustained rise in the general price level

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