Work for today:
1) Blog your exam question you created yesterday (remember to include a case-study)
2) Answer one other exam question on the blog that has been created by one of your peers!
3) Have a look at this video:
http://www.bbc.co.uk/news/business-19776472 How Iranian rial value loss has affected the economy.
Answer the questions below in your books:
- Economic sanctions have affected supply of many goods. Illusttrate using demand and supply analysis, what has happened to the price of meat in Iran (which factor in the mneumonic PINTSWC best describes this shift?) (5)
- What is the approximate dollar/rial exchange rate? (2)
- The report says domestic firms face higher costs. If firms pass on their higher costs in the form of higher prices to protect their profits, what name do we give to this type of inflation? (2)
- Explain two other costs of inflation. (4)
- Are sanctions only to blame for Iran's economic woes? What other reasons are given in the report? (3)
- A commentator says that there will be unemployment and inflation. If this is sustained, what is the special name given to this situation? (2)
Price Elasticity, Income Elasticity... Everything!!
5. Knowledge recap - can you remember how interest rates work? see video here: http://www.bbc.co.uk/news/business-11238317
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