Cambridge IGCSE Economics practice

Paper 2 structured question: Inflation and deflation

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Paper

Marks

Topic

Inflation and deflation

Exam-style question

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Paper 2Structured Questions4 marks

Economic analysis of a country facing falling prices.

Description

The country has experienced a decline in the prices of goods and services, raising concerns about deflation.

a
Explain Explain what deflation is and its potential effects on the economy.
Your answer
Aim for approximately 4 distinct marking points.
[4]

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Paper 2Structured Questions1 marks

Description

The country has seen a consistent increase in the prices of goods and services over the past year, leading to concerns about inflation.

a
State What is the term used to describe the general increase in prices?
Your answer
Aim for approximately 1 distinct marking point.
[1]