Gce Model Questions Vol1 2021 Economics Question 9

Practice essay / theory question 9 from the 2021 Gce Model Questions Vol1 Economics examination. This question covers Inflation .

Gce Model Questions Vol1 2021 Economics Essay / Theory
Topic: Inflation
Question 9 GCE_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • essay

Inflation has become a major macro‑economic issue in Nigeria.

Question Parts

( a )
Define inflation and explain the two principal types – demand‑pull and cost‑push – giving one cause for each type.
( b )
In the year 2022 the Consumer Price Index (CPI) rose from 120 to 138. (i) Calculate the percentage rate of inflation for the year. (ii) If the average nominal wage increased by 5 % over the same period, determine the percentage change in real wages and comment on the likely effect on workers.
( c )
Discuss the advantages and limitations of monetary policy and fiscal policy as tools for controlling inflation in a developing economy such as Nigeria. In your answer, suggest which policy or combination you consider most appropriate and justify your choice.

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About This Question

This is Gce Model Questions Vol1 2021 Economics Question 9. It is one of the essay questions from the 2021 Gce Model Questions Vol1 Economics examination.

The question covers Inflation .

View More Gce Model Questions Vol1 2021 Economics Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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