a) Describe two costs of unanticipated inflation.

b) When is the best time to monetarise a budget deficit in terms of limiting any adverse inflationary effect?

c) Outline the concept of hysteresis and explain the likely cause of this phenomenon.

d) How does Okun’s law relate to unemployment?

e) There is growing community concern that unemployment will rise with disruptive technologies, artificial intelligence and automation. How should government economic policy react to this?