A) The inflation rate in UK is currently a double digit which the country has not...

 

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A) The inflation rate in UK is currently a double digit which the country has not experienced in many decades. The Central Bank is very concerned with the current inflation rate, and it is noticed that the economy is not at full employment (below maximum capacity level), A) what would be the macroeconomic consequences on aggregate income and price level. This needs to be properly explained using descriptive and graphical illustration B) What action is most appropriate for the Central Bank to take and the consequences of such action. This needs to be properly explained using descriptive and graphical illustration A) The inflation rate in UK is currently a double digit which the country has not experienced in many decades. The Central Bank is very concerned with the current inflation rate, and it is noticed that the economy is not at full employment (below maximum capacity level), A) what would be the macroeconomic consequences on aggregate income and price level. This needs to be properly explained using descriptive and graphical illustration B) What action is most appropriate for the Central Bank to take and the consequences of such action. This needs to be properly explained using descriptive and graphical illustration