The government of Slovenia has put in place several supply-side policy measures to affect the country’s inflation rate. Another factor influencing the economy is a shift in trade union membership and strength.
(a)[2]
Identify two recognised price indices.
(b)[4]
Explain two supply-side policy measures in a country.
(c)[6]
Analyse why a government may want to lower its country’s inflation rate.
(d)[8]
Discuss whether or not greater trade union strength will 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: “the Retail Price Index (RPI)” …