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Cambridge IGCSE Economics practice

Paper 2 structured question: Inflation and deflation

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Inflation and deflation

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Paper 2Structured Questions2 marks

The economy is facing deflation, with falling prices and reduced consumer spending.

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Addressing Deflation

The government is exploring options to stimulate the economy and counteract deflation.

  1. a

    Explain two strategies the government could use to combat deflation.

    Aim for approximately 2 distinct marking points.

    [2]

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Paper 2 structured question: Inflation and deflation

Paper 2Structured Questions1 marks

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Managing High Inflation

The government is considering various strategies to manage the high inflation rate affecting the economy.

  1. a

    State one strategy the government could use to manage inflation.

    Aim for approximately 1 distinct marking point.

    [1]