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QUESTION 1
(a) Illustrate the main causes of inflation in Mauritius.
(b) Critically analyse the costs of inflation. Which of these items is likely to have encouraged the Mauritian government in its adoption of inflation as public enemy number one?
QUESTION 2
(a) Clearly illustrate the types of unemployment that may consist the unemployment level that pertain to the Mauritian economy.
(b) „There is no relationship between inflation and unemployment either in the short run or in the long run? Discuss.
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