This question is about inflation

23a)

What global factors have contributed to high inflation in Australia in recent months? Explain 2 factors in your answer.

23b)

Inflation is expected to reach around 7.75% by the end of 2022.

Which groups in society are hurt as a result of high inflation? Explain 2 groups in your answer.

23c)

If inflation remains high, what will happen to nominal wages as a result? How could this keep inflation stubbornly high?

23d)

1 Marks

Rising prices is one feature of stagflation. What else is needed for stagflation to occur and how may this happen?

23e)

Explain the trade-off policymakers face when dealing with stagflation.