Discuss the main reasons for rising inflation and use the labour market (WS/PS) model augmented by the Phillips curve to explain how the energy shock is leading to inflation (see Unit 15).

Exam coursework

Show the effects of the pandemic-induced recession using the Aggregate Demand (AD) Multiplier Model 45° line (Unit 14):

Show what happens to the AD curve and explain which components of the AD curve are affected and how?

Provide some examples of policy responses implemented by governments to mitigate the economic costs of the crisis. Using the Multiplier Model, show graphically and explain how the aggregate demand function may shift with the selected policies.

The Bank Rate increased to 0.75% – March 2022, see Summary and Minutes from the Monetary Policy Committee, Bank of England. Discuss the main reasons for rising inflation and use the labour market (WS/PS) model augmented by the Phillips curve to explain how the energy shock is leading to inflation (see Unit 15).