Gce Model Questions Vol1 2020 Economics Question 9

Practice essay / theory question 9 from the 2020 Gce Model Questions Vol1 Economics examination. This question covers Inflation, Monetary Policy, Real Wages, Savings .

Gce Model Questions Vol1 2020 Economics Essay / Theory
Topics: Inflation Monetary Policy Real Wages Savings
Question 9 GCE_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • essay

The table below shows the Consumer Price Index (CPI) for Nigeria from 2015 to 2019. | Year | CPI | |------|-----| | 2015 | 115 | | 2016 | 124 | | 2017 | 136 | | 2018 | 150 | | 2019 | 165 | Using this information, answer the following:

Question Parts

( a )
Explain the main causes of demand‑pull inflation and cost‑push inflation, giving one realistic example of each that could occur in the Nigerian economy.
( b )
Calculate the annual inflation rate for each year from 2016 to 2019 using the CPI data, then determine the average inflation rate over the four‑year period. Comment on the trend shown by the calculated rates.
( c )
Discuss the likely impact of the inflation trend you have identified on (i) real wages of workers and (ii) the value of household savings in Nigeria. Then evaluate two monetary‑policy measures that the Central Bank of Nigeria could adopt to curb inflation, highlighting one advantage and one limitation of each measure.

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About This Question

This is Gce Model Questions Vol1 2020 Economics Question 9. It is one of the essay questions from the 2020 Gce Model Questions Vol1 Economics examination.

The question covers Inflation, Monetary Policy, Real Wages, Savings .

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