Question - Answer the following:

Why might an increase in government expenditure give rise to inflation? Rationale The question addresses the following learning outcome: be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives.

The answer to the question should be divided into three parts: 

Part 1: Introduction

The introduction sets up your response by succinctly stating your understanding of the issues, what think is the best way to analyse the situation - including choice of theory and sources of evidence, what type of findings you expect and what potential applications you expect there to be. 

Part 2: Analysis

The analysis will represent the bulk of your work. Here you will provide your answer in detail by drawing upon the literature, the theory and the evidence to come up with an answer to the question posed. You may find that you want to break this section up into a number of sub-parts - one for a detailed discussion of the issues including your non-technical response, one for a detailed analysis of the tools of analysis you will use (theory), one for your extensive consideration of the evidence, one where you draw together your information and findings along with their implications.  

Part 3: Conclusion

In the conclusion you briefly and succinctly review what you have done in answer to the question and indicate what further issues there might be to be considered. 

1000 words

4 APA references.