Moldova’s population stands at 3.5 million. It is among Europe’s poorest countries, with fairly low living standards. In 2015, the economy went into recession and its inflation rate doubled. Moldova’s central bank raised the interest rate from 8.5% to 15.5%.
(a)[2]
Identify two influences on a country’s population size.
(b)[4]
Explain two causes of a rise in living standards.
(c)[6]
Analyse how a rise in the rate of interest could lead to higher unemployment.
(d)[8]
Discuss whether a government ought to increase tax rates during a recession.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The birth rate” …