Question: please answer all the question. Thank you Question 2 a) State the cause of inflation: demand-pull inflation, or cost-push inflation, and explain your answer. i.

 please answer all the question. Thank you Question 2 a) State

please answer all the question. Thank you

the cause of inflation: demand-pull inflation, or cost-push inflation, and explain your

Question 2 a) State the cause of inflation: demand-pull inflation, or cost-push inflation, and explain your answer. i. Government imposed taxes on digital business. (2 Marks) ii. Bread manufacturers were not able to produce more bread to meet demand during the pandemic covid-19. (2 Marks) iii. Restaurants increase the price of their meals due to an increase in the price of their ingredients that are imported from overseas. (2 Marks) iv. Increase in minimum wages announced by the government gives pressure on employers and forces them to increase the price of their products. (2 Marks) V. Export ban for flour by India, lead to the price of flatbread in Malaysia becoming more expensive. (2 Marks) b) Inflation is one of the major concerns in macroeconomics and has given the pressure on the cost of living, especially in the B40 category. Discuss how government can act by using fiscal policy with focus on government expenditure and taxes to control inflation in the economy. (10 Marks) [Total: 20 Marks]

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