0455.4.8.1 — definition of inflation and deflation.: past paper questions
Real questions on 0455.4.8.1 — definition of inflation and deflation.
The newest 12 of 12 written questions. Open one to see it on the real paper.
- 0455/22 · May/June 2026 · Q3a[2]
State what is meant by a fall in the inflation rate.
See it on the paper → - 0455/21 · May/June 2024 · Q3c[6]
Analyse the reasons why governments aim for stable prices.
See it on the paper → - 0455/22 · May/June 2024 · Q3d[8]
whether or not an economy with a high inflation rate will have a low economic growth rate.
See it on the paper → - 0455/12 · October/November 2023 · Q23[1]
What must have happened in a country when it experienced an annual rate of inflation of 100%?
See it on the paper → - 0455/22 · October/November 2023 · Q2b[4]
two reasons why a low inflation rate may increase a country’s economic growth rate.
See it on the paper → - 0455/23 · October/November 2023 · Q1h[6]
Discuss whether or not deflation would benefit the Montenegro economy. Section B Answer any three questions. Each question is introduced by stimulus material. In your answer you may refer to this material and/or to other examples that you have studied.
See it on the paper → - 0455/22 · February/March 2023 · Q1d[4]
Explain two reasons why the US inflation rate fell in 2020.
See it on the paper → - 0455/21 · October/November 2022 · Q3a[2]
Define inflation.
See it on the paper → - 0455/12 · October/November 2021 · Q16[1]
An economy recorded a second month of deflation. What does this mean?
See it on the paper → - 0455/21 · May/June 2021 · Q3c[6]
Analyse the advantages of a low rate of inflation.
See it on the paper → - 0455/22 · February/March 2019 · Q1f[5]
Discuss whether or not a government should aim for a low rate of inflation.
See it on the paper → - 0455/22 · February/March 2019 · Q3c[6]
Analyse why deflation may cause a fall in output.
See it on the paper →
What examiners said
There were some very good answers to this question which related the two reasons to demand-pull inflation and cost-push inflation. For example: There was a decrease in consumer expenditure, meaning that households spent less. As a result, aggregate demand may have fallen. This may explain why demand-pull inflation declined in 2020. Moreover, there was a reduction in workers’ bargaining power, per...
— Examiner report, February/March 2023, 0455/22 Q1(d) (Cambridge)
Most candidates provided a satisfactory definition of inflation for two marks. The idea of rising price was usually understood but time was mentioned less often, and the ‘general level’ was frequently missed in answers. The weakest answers referred to the price of a product rather than prices in general.
— Examiner report, October/November 2022, 0455/21 Q3(a) (Cambridge)
This was poorly answered by a large number of candidates. Strong answers made clear that with low inflation prices were still rising, but only slowly and then explained the positive impact that this would have e.g., removing uncertainty for firms in investing and increased exports to countries where inflation was at a higher rate. The high number of weak answers started from an incorrect assertion...
— Examiner report, May/June 2021, 0455/21 Q3(c) (Cambridge)
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