SECTION B

Question 2

• Evaluate the effectiveness of monetary policy in controlling inflation and promoting economic stability. What are the limitations and challenges associated with using interest rates as a tool?
• Compare and contrast fiscal policy and monetary policy as tools for addressing economic downturns. In what circumstances might one be more effective than the other?

SECTION C

Question 3

A. Using facts and figures to justify your answer explain 6 issues related to the current macroeconomic and geopolitical environment that could add to a country of your choice’s:

1. Inflation rate (2 issues)
2. Unemployment (2 Issues)
3. Gross Domestic Product (GDP) (2 Issues)