a) Distinguish between inflation, deflation and hyperinflation.

Question

Which Consumer Price Index would you assess if you wanted to study the behaviour of inflation across European countries?

b) Distinguish, using appropriate diagrams, between demand-pull and cost-push inflation. The inflationary effect caused by an increase in the price of utility tariffs would fall under which of these two causes of inflation?

c) Discuss THREE types of unemployment and provide ONE example of a policy that can be used to reduce each type.

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