Questions on inflation

Questions on inflation


Question 1

Why are inflation and deflation considered to be economic problems?

Question 2

Assess the usefulness of indicators of inflation, such as the CPI, in measuring average price changes over time.

Question 3

Examine the likely impact of a rise in global commodity prices on an industrial economy. Use diagrams to support your answer.

Question 4

Assess the effectiveness of monetary policy in controlling inflation.