Economics 9708/22 March 2018

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

1. Impact of Venezuela’s inflation and economic crisis on the production possibility curve.
2. Analysis of the price elasticity of demand for oil and its effect on Venezuela’s export earnings.
3. Role of price controls in causing shortages and their impact on the market equilibrium.
4. Explanation of demand-pull and cost-push inflation pressures contributing to Venezuela’s hyperinflation.
5. Evaluation of whether Venezuela’s inflation rate allows the bolivar to function effectively as money.
6. Comparison of decision-making effectiveness between planned and free market economies.