Question FIVE

Explain, with the aid of a graph, the demandpull inflation. In your answer, consider the following:

• Graphical illustration of the demandpull inflation (5)
• Provide any three of your own examples/scenario that might cause the demandpull inflation (6)
• Recommend the policy tools to use in order to curb each type of inflation mentioned above (4)

You will receive more marks for your own original examples than for examples in your textbook, from your lecturer, or on Learn.