Gce Model Questions Vol1 2018 Economics Question 9

Practice essay / theory question 9 from the 2018 Gce Model Questions Vol1 Economics examination. This question covers Inflation .

Gce Model Questions Vol1 2018 Economics Essay / Theory

Topic: Inflation

Question 9 GCE_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • essay

The table below shows the Consumer Price Index (CPI) for a country over three consecutive years. The CPI is a price index with the base year 2010 = 100. Year CPI 2015 108 2016 ? 2017 115 It is known that the CPI increased by the same absolute amount each year between 2015 and 2017.

Question Parts

( a )

Determine the CPI for 2016.

( b )

Calculate the inflation rate (percentage change in CPI) for 2016 and for 2017.

( c )

If the average nominal wage grew from ₦250,000 in 2015 to ₦280,000 in 2017, calculate the average real wage growth over the period, using the CPI values you have found. Show all steps.

( d )

Discuss two monetary‑policy tools the central bank could use to curb inflation, and evaluate their likely effectiveness in the context of the data above.

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About This Question

This is Gce Model Questions Vol1 2018 Economics Question 9. It is one of the essay questions from the 2018 Gce Model Questions Vol1 Economics examination.

The question covers Inflation .

View More Gce Model Questions Vol1 2018 Economics Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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