Angola experienced a marked rise in its money supply during 2019. The National Bank of Angola was worried that inflation would stay above 17% and damage Angola’s producers. The Angolan government had been focusing on reducing unemployment, which fell from 10% in 2010 to 7% in 2019.
(a)[2]
Identify two distinct forms of money.
(b)[4]
Explain two functions performed by a central bank for its government.
(c)[6]
Analyse why a government may choose lower unemployment as its main objective.
(d)[8]
Discuss whether inflation is likely to harm producers.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Metal coins” …