Assume the Malaysian economy is operating near capacity.Provide two examples that would cause demand-pull inflation to occur.What would be the impact on the price level and Real GDP resulting from demand-pull inflation?Would unemployment be a problem in the short run due to demand-pull inflation.Explain.(6 marks)

(ii)Michael and Georgia were discussing their job prospects over coffee in the GOSSIP CAF.Michael told his mates that he has just resigned from his current job because he worked long hours and did not have enough time to spend with his kids. He said he is looking for a new job with normal hours and family friendly policies.Georgia joined in and said that since she moved to the countryside six months ago; she is still unable to find a job because there are no jobs that match her skills.

Which type of unemployment best describes Michael and Georgia's situation?Explain.(4 marks)