Economics · May / June 2026 · Paper 21 · Question 2
2281
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The question as text
In 2023, Argentina had a high inflation rate and a deficit on the current account of its balance of payments. Very high inflation can affect how efficiently the price mechanism works. As Argentina’s products have different price elasticities of demand, the impact of price changes affected the demand for products to different extents. The high inflation also encouraged workers to try to increase their wages and some industries to ask for protection from foreign competition.
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2(a)[2]
2(b)[4]
2(c)[6]
2(d)[8]
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