Gce Model Questions Vol1 2017 Economics Question 9

Practice essay / theory question 9 from the 2017 Gce Model Questions Vol1 Economics examination. This question covers Inflation, Causes of inflation, Effects of inflation, Monetary policy, Fiscal policy .

Gce Model Questions Vol1 2017 Economics Essay / Theory

Topics: Inflation Causes of inflation Effects of inflation Monetary policy Fiscal policy

Question 9 GCE_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • essay

The table below shows the Consumer Price Index (CPI) for Nigeria, with 2010 as the base year (CPI = 100).

Question Parts

( a )

Calculate the annual inflation rate for each year from 2015 to 2020 using the CPI data.

( b )

Identify the overall trend in the inflation rates you have calculated and discuss two macro‑economic factors that could have contributed to this trend in Nigeria.

( c )

Explain how the observed pattern of inflation is likely to affect (i) households with fixed incomes, (ii) borrowers, and (iii) exporters.

( ) Households with fixed incomes

( ) Borrowers

( ) Exporters

( d )

Evaluate two policy measures – one monetary and one fiscal – that the Central Bank of Nigeria could adopt to bring inflation down to the target range of 6‑9 %. Discuss the likely advantages and possible drawbacks of each measure.

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About This Question

This is Gce Model Questions Vol1 2017 Economics Question 9. It is one of the essay questions from the 2017 Gce Model Questions Vol1 Economics examination.

The question covers Inflation, Causes of inflation, Effects of inflation, Monetary policy, Fiscal policy .

View More Gce Model Questions Vol1 2017 Economics Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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