Gce Model Questions Vol1 2025 Economics Question 9

Practice essay / theory question 9 from the 2025 Gce Model Questions Vol1 Economics examination. This question covers Inflation .

Gce Model Questions Vol1 2025 Economics Essay / Theory

Topic: Inflation

Question 9 GCE_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • essay

The table below shows the Consumer Price Index (CPI) for Nigeria over a five‑year period. | Year | CPI Index | |------|-----------| | 2018 | 115 | | 2019 | 121 | | 2020 | 130 | | 2021 | 140 | | 2022 | 152 | The Central Bank of Nigeria (CBN) is concerned that inflation has been persistently high. Answer the following questions:

Question Parts

( a )

Define inflation and distinguish between demand‑pull and cost‑push inflation, giving one realistic example of each in the Nigerian context.

( b )

Using the CPI data above:

( ) Calculate the average annual inflation rate over the period 2018‑2022.

( ) Comment on the trend shown by the CPI and discuss two possible macro‑economic implications for the Nigerian economy.

( c )

The CBN is considering two policy measures to curb inflation:

( ) Raising the policy interest rate.

( ) Tightening open‑market operations by selling government securities.

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About This Question

This is Gce Model Questions Vol1 2025 Economics Question 9. It is one of the essay questions from the 2025 Gce Model Questions Vol1 Economics examination.

The question covers Inflation .

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