Deflation and Inflation Cost-push and Demand-push Q3

Q.
(a) Explain the difference between deflation and inflation. (4 marks)

(b) Explain two (2) of the following factors as causes of inflation.

(i) Cost-push inflation (4 marks)

(ii) Demand-push inflation (4 marks)

(c) Describe the following two (2) methods to tackle inflation.

(i) Monetory Policy (4 marks)

(ii) Fiscal Policy (4 marks)

(20 marks, 2015 Q3)

A.

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