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Cambridge IGCSE Economics practice

Paper 2 structured question: Inflation and deflation

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1

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Inflation and deflation

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Paper 2Structured Questions1 marks

The economy is experiencing high inflation, leading to increased prices for goods and services.

Description

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]

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Paper 2 structured question: Inflation and deflation

Paper 2Structured Questions2 marks

Description

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]