Overview
B1Analyse the different causes of inflation and analyse the possible disadvantages of inflation on an economy. (10 points)(First give the definition of inflation, then give the answer logically by using some words such as “First, second, on the one hand, on the other hand.”)Inflation refers to the sustained increase in the general price level in an economy. Evaluate the extent to which low inflation should be the primary focus of a government’s macroeconomic policy. (20 points)(This can be divided into two situations, recession or high inflation.)
B2Describe the different types of merger that exist and analyse the possible benefits that a merger might offer to consumers. (10 points) (Give the definition of merger first, then doing the analysis.)Evaluate the view that merger will always benefit consumers. (20 points)(It must be critically evaluated, and give the answer logically