Economics 9708/21 Oct Nov 2017 | Cambridge AS Level Past Papers With Mark Scheme

Download the attached file to view the complete content. Key questions extracted:

1. Effects of Argentina’s inflation and fixed exchange rate system on the peso and foreign exchange reserves.
2. Causes and implications of a black market resulting from fixed currency rates.
3. Analysis of a 38% interest rate hike in Argentina and its potential to control inflation and attract funds.
4. Comparison of the advantages of fixed versus freely floating exchange rates for Argentina.
5. Factors influencing the price elasticity of supply and government interventions to enhance it.
6. Impact of aggregate demand increases on inflation, analyzed using production possibility curves and supply-demand models.