Question 6

1. Presently, many countries in the world are facing rising inflation. Assuming ceteris paribus explain how unanticipated inflation can affect the financial and labour markets. Use appropriate terminologies in your answer.2 Marks
2. Reflect on an occasion where you or someone you know has been affected by unanticipated inflation.1 Mark
3. Explain with the support of graph(s), demand-pull and cost push inflation. Which, in your view, is the main driver of the present increase in inflation. Explain.2 Marks
4. Is there a present danger of stagflation occurring in the world? Define and explain.1 Mark