In 2019, Angola experienced a marked rise in the money supply. The National Bank of Angola worried that this would leave inflation above 17% and damage Angola’s producers. Meanwhile, the Angolan government had focused on cutting unemployment, which had dropped from 10% in 2010 to 7% in 2019.
(a)[2]
Identify two different forms of money.
(b)[4]
Explain two roles a central bank performs for its government.
(c)[6]
Analyse why a government may have lower unemployment as its main aim.
(d)[8]
Discuss whether or not inflation will harm producers.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “coinage” …