ATTEMPT ANY 1 QUESTION FROM SECTION A, PLUS ANY 2 QUESTIONS FROM

SECTION B.
Each question carries 25 marks.

Section A Seen Questions

Question 1
Explain the 2 most common causes of inflation. Evaluate the policy options available to
governments as a means of controlling each type of inflation.
[25 marks]

Question 2
Outline the meaning of demand-side policies and clearly explain how successful demandside policies can lead to an expansion in economic output. Evaluate the effectiveness of
demand-side policies as a means of managing the macroeconomy when compared directly
with supply-side policies.
[25 marks]