CAPE Economics Unit 2 · 2016 · Paper 2 · Question 3(c)
Describe TWO ways in which inflation impacts a country's balance of payments.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 3(a)(i)Define the term 'inflation' and state how it is measured.[3 marks]
- 3(a)(ii)State FOUR challenges in measuring inflation accurately.[4 marks]
- 3(b)Differentiate between 'cost-push inflation' and 'demand-pull inflation'.[4 marks]
- 3(d)Discuss ONE positive and ONE negative effect of inflation on an economy.[8 marks]
More practice: the rest of this paper · more Balance of Payments and Exchange Rates questions · all CAPE Economics Unit 2 past papers