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) (2) Q.1.2 Can demand management policies be used to combat stagflation? Explain your answer Q.1.3 Identify three ways in which aggregate supply could decrease

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) (2) Q.1.2 Can demand management policies be used to combat stagflation? Explain your answer Q.1.3 Identify three ways in which aggregate supply could decrease in an economy. (3) The Independent Institute of Education (Pty) Ltd 2021 Page 10 of 11 19, 20, 21 2021 (Marks: 10) Question 2 Explain, with the aid of a graph, the demand-pull inflation as a cause of inflation (Note: Five marks for the graph and five marks for the explanation) (Hint: Outline the factors that cause the change in the AD curve)

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