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Cambridge IGCSE Economics practice

Paper 2 structured question: Inflation and deflation

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2

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1

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Topic

Inflation and deflation

Exam-style question

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Paper 2Structured Questions1 marks

Economic conditions in a country experiencing rising prices.

Description

Rising Prices in Economy

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

  1. a

    State What is the term used to describe the general increase in prices?

    Aim for approximately 1 distinct marking point.

    [1]

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Paper 2 structured question: Inflation and deflation

Paper 2Structured Questions4 marks

Description

Falling Prices in Economy

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

  1. a

    Explain Explain what deflation is and its potential effects on the economy.

    Aim for approximately 4 distinct marking points.

    [4]