Slovenia’s government has put in place several supply-side policy measures to affect the nation’s inflation rate. Another factor shaping the economy is a shift in trade union membership and influence.
(a)[2]
Identify any two price indices.
(b)[4]
Explain two supply-side policy measures that could be used.
(c)[6]
Analyse why a government may wish to bring down the inflation rate in its country.
(d)[8]
Discuss whether increasing the strength of trade unions will or will not benefit an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “One valid answer is Retail Price Index (RPI).” …