Extract B states: 'With global supply-chain disruptions, some analysts predict that a sharp spike in raw material costs must lead to prolonged inflationary pressure.'
Use the extracts and your knowledge of economics to assess the view that when an economy experiences a negative supply-side shock there will always be a sustained increase in the rate of inflation.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.