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# Evaluate the likely microeconomic and macroeconomic effects of relatively high inflation rates in many African countries
- URL: https://www.a-level-economics-tutor.com/evaluate-the-likely-microeconomic-and-macroeconomic-effects-of-relatively-high-inflation-rates-in-many-african-countries/
- Published: 2026-06-01T09:02:07.000Z
- Updated: 2026-06-01T09:02:07.000Z
- Author: Jaisul Naik
- Tags: Edexcel 25 Mark Question

### [Edexcel A-Level Economics Paper 3 June 2019 Insert](https://storage.ghost.io/c/ed/77/ed776ea5-c32f-46bf-aa49-8f19b6cd7ac4/content/files/2025/10/INSERT---June-2019-Paper-3.pdf?ref=a-level-economics-tutor.com)

**Evaluate the likely microeconomic and macroeconomic effects of relatively high inflation rates in many African countries. (25 marks)**

**Plan**

- **Paragraph 1**
  - **Argument: one microeconomic effect of high inflation can be an increase in costs due to a wage price spiral**
  - **Diagram: increase in costs**
  - **Evaluation: firms may also be able to increase their revenue if the inflation is associated with strong economic growth**
- **Paragraph 2**
  - **Argument: one macroeconomic effect of high inflation is a fall in cost push inflation**
  - **Diagram: decrease in SRAS**
- **Evaluation: high inflation can also cause imports to become cheaper which can actually increase SRAS but this depends on PED for imports**

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