3 E S NS Consider the following two scenarios: A - A period of time with a steady rate of inflation of 5% a year B - A period of time with a variable rate (sometimes high; sometimes low) that averages 5% a year (i) List four effects for each scenario. These could be macro or micro (consumers/producers/specific sectors of the circular flow). Use six (6) of the inflation terms we learned, one has to be 'real' or 'deficit'. Scenario A 1.__________________________________ ___________________________________ 2.__________________________________ ___________________________________ 3._________________________________ ._________________________________ 4.__________________________________ ____________________________________ Scenario B 1___________________________________ ____________________________________ 2.____________________________________ ____________________________________ 3. ____________________________________ ____________________________________ 4.___________________________________ ____________________________________ (ii) Which do you think is more harmful, A or B? ______ Give 2 reasons