Q2: The pandemic and the war in Ukraine have impacted the economies of many countries in 2022.

Consider Sri Lanka for answering the questions

a/ Select any country of your choice and explain, with the help of examples, how its economy has been Impacted by the above 2 events. (5 marks)

b/ Explain the difference between inflation, hyper-inflation and stagflation. (5 marks)

c/ In your view, what sort of inflation is this country experiencing as a result of the pandemic and the war in Ukraine. Please provide examples and refer to some economic theories to support your analysis and conclusion. (5 marks)

d/ If you were the economic advisor to this country, what recommendations and actions would you advise the central bank and the government to take. Please argue how your recommendations can help the economy of this country. (10 marks)