8 marksUnemployment and Inflation
CAPE Economics Unit 2 · 2016 · Paper 2 · Question 3(d)
Discuss ONE positive and ONE negative effect of inflation on an economy.
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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(c)Describe TWO ways in which inflation impacts a country's balance of payments.[6 marks]
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