0455.4.8.2 — measurement of inflation and deflation Measurement of inflation and deflation using the Consumer Prices Index (CPI).: past paper questions
Real questions on 0455.4.8.2 — measurement of inflation and deflation measurement of inflation and deflation using the consumer prices index (cpi).
The newest 8 of 8 written questions. Open one to see it on the real paper.
- 0455/23 · October/November 2023 · Q5a[2]
Define Consumer Prices Index.
See it on the paper → - 0455/11 · October/November 2021 · Q21[1]
Why is weighting used in the Consumer Prices Index (CPI)?
See it on the paper → - 0455/12 · October/November 2021 · Q21[1]
How is the rate of inflation measured?
See it on the paper → - 0455/12 · May/June 2020 · Q22[1]
What would not be required in the construction of an index of consumer prices?
See it on the paper → - 0455/21 · October/November 2019 · Q7b[4]
Explain how the CPI is calculated.
See it on the paper → - 0455/12 · May/June 2019 · Q23[1]
In January 2016 the rate of inflation in a country changed from 3% to 2%. In March 2016 the rate of inflation was 4%. What happened to the price level in January and March?
See it on the paper → - 0455/21 · May/June 2019 · Q3b[4]
Explain how a rise in the price of food would affect a country’s consumer prices index (CPI).
See it on the paper → - 0455/21 · May/June 2019 · Q3d[8]
Discuss whether or not a higher inflation rate will benefit producers.
See it on the paper →
What examiners said
Question 21 was answered correctly by 36 per cent of the candidates who chose option D. 13 per cent chose option A, 12 per cent chose option B and 39 per cent chose option C. In consumer price inflation, expenditure weights are designed to reflect the expenditure patterns of the target population of households covered by the index. The weights are meant to reflect the relative importance of the go...
— Examiner report, October/November 2021, 0455/11 Q21 (Cambridge)
Some candidates confused the CPI with GDP and the majority were only able to identify one or two elements of the index, such as a basket of goods and services or it uses a base year. A common misconception was that the index related to the purchase of a single product or a single household rather than a weighted average of products typically bought by households. The best answers explained the use...
— Examiner report, October/November 2019, 0455/21 Q7(b) (Cambridge)
Candidates need to understand that CPI is a means of calculating inflation and show how higher food prices would lead to an increase in the value of CPI. Answers needed to provide some explanation of CPI linked to the effect of higher food prices.
— Examiner report, May/June 2019, 0455/21 Q3(b) (Cambridge)
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