‘Natural gas, as a primary source of heating and electricity generation, remains vital, but its price volatility has posed major challenges to macroeconomic stability, particularly regarding cost-push inflation and fiscal pressure.’ Evaluate the extent to which a sustained rise in the global price of natural gas inevitably leads to macroeconomic instability in importing economies.
222 exam-style questions on AQA A Level Economics 2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts, covering 2.2.1 The circular flow of income, 2.2.2 Aggregate demand and aggregate supply analysis, 2.2.3 The determinants of aggregate demand, 2.2.4 Aggregate demand and the level of economic activity, 2.2.5 Determinants of short-run aggregate supply, and 2.2.6 Determinants of long-run aggregate supply. Each one has a worked solution and a mark scheme showing where the marks go.