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(1a) Describe the concept of inflation and list any three types of inflation. (1b) Explain 5 factors that can shift the Aggregate Demand (AD) curve (1c) Given the statistics for a small economy called Abua below, derive the GDP deflator and assert if there is evidence of inflation or otherwise. Real GDP = $650 million Nominal GDP = $400 million Inflation rate = 9% Unemployment rate = 15%
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