Explain how the data in Extract D (Figures 1 and 2) show why the Norwegian central bank (Norges Bank) may have been considering a further cut in its policy rate of interest.
Extract D
Figure 1: Annual real GDP growth rates (%) for Norway, 2018–2023
| Year | Annual real GDP growth rate (%) |
|---|---|
| 2018 | 3.1 |
| 2019 | 2.5 |
| 2020 | 1.8 |
| 2021 | 1.2 |
| 2022 | 0.7 |
| 2023 | 0.3 |
Figure 2: Consumer price index (CPI) for Norway, 2018–2023 (June 2019 = 100)
| Date | CPI index |
|---|---|
| 31 Dec 2018 | 98.20 |
| 31 Dec 2019 | 100.40 |
| 31 Dec 2020 | 101.80 |
| 31 Dec 2021 | 102.71 |
| 31 Dec 2022 | 103.12 |
| 31 Dec 2023 | 103.32 |
176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.