SECTION [3] SHORT ESSAY [20%]
INSTRUCTIONS:
1- WRITE YOUR ANSWER IN THE SPACE PROVIDED WITH CLEAR ARGUMENTS.
2- USE THE FORMAT WITH INTRODUCTION, BODY TEXT AND CONCLUSION.
3- YOU SHOULD SPEND ABOUT [24] MINUTES ON THIS SECTION
“In 2018, the average inflation rate in Egypt amounted to about 20.86 percent”.
Source: Egypt- Inflation rate 2021 | Statista
(World Bank, 2015)”
Now, if Egypt wants to control Inflation rate, your task is:
1. Define the phase of the business cycle that Egypt is going through.
2. To choose the appropriate monetary policy.
3. To provide clear arguments using AD and AS analysis. Show current situation on the graph and then changes when monetary policy is used
(Use the format with introduction, body text and conclusion)

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