Assignment Task
Questions
1. Using a diagram to aid your answers, discuss the difference between cost-push and demand-pull inflation.
2. What are the demand-side and cost-side causes of the current rising inflation?
3. Explain the impact an increase in interest rates has on the economy.
4. How do you explain the curious case of deflation in Japan?
5. How would you tackle the current crisis? Pay attention to both the risk of inflation as well as the need to stimulate the economy.
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