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QUESTION FOUR. [35] 4.1 Consider the type of inflation whereby its source is linked to the components of aggregate demand. Propose a solution to combat

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QUESTION FOUR. [35] 4.1 Consider the type of inflation whereby its source is linked to the components of aggregate demand. Propose a solution to combat this type of inflation. (15) 4.2 A business cycle is a pattern of upswings and downswings in the economy. In terms of this statement answer the following questions: 4.2.1 Analyse the type of unemployment that is linked to the business cycle. (8) 4.2.2 Design a fiscal policy that can be implemented by the government of a country to reduce this type of unemployment. (12)

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