0455.4.8.4 — consequences of inflation and deflation The consequences of inflation and deflation for consumers, workers, savers, lenders, firms and the e: past paper questions
Real questions on 0455.4.8.4 — consequences of inflation and deflation the consequences of inflation and deflation for consumers, workers, savers, lenders, firms and the e
The newest 11 of 11 written questions. Open one to see it on the real paper.
- 0455/22 · February/March 2025 · Q4d[8]
Discuss whether or not inflation will harm a country’s firms.
See it on the paper → - 0455/22 · May/June 2024 · Q1e[4]
the relationship between the change in Tunisia’s average wage and inflation rate.
See it on the paper → - 0455/22 · May/June 2022 · Q2d[8]
whether or not inflation will harm producers.
See it on the paper → - 0455/23 · May/June 2022 · Q2d[8]
Discuss whether or not inflation is always a disadvantage to an economy.
See it on the paper → - 0455/21 · October/November 2021 · Q4b[4]
Explain two causes of inflation.
See it on the paper → - 0455/12 · May/June 2021 · Q20[1]
What is likely to happen when a country is experiencing deflation?
See it on the paper → - 0455/22 · May/June 2021 · Q3d[8]
Discuss whether inflation harms a country’s industries.
See it on the paper → - 0455/23 · October/November 2020 · Q5d[8]
Discuss whether or not deflation will benefit an economy.
See it on the paper → - 0455/21 · May/June 2020 · Q1h[6]
whether or not the increase in borrowing is likely to have caused inflation in Vietnam in 2017.
See it on the paper → - 0455/21 · May/June 2020 · Q2b[4]
two consequences of deflation.
See it on the paper → - 0455/11 · October/November 2019 · Q23[1]
In which period did Japan experience deflation followed by inflation?
See it on the paper →
What examiners said
This was reasonably well answered. Most candidates did show some awareness of the possible effects of inflation on a country’s firms. In some cases, however, candidates wrote about the general effects of inflation on an economy rather than specifically on a country’s firms. An example of a Level 1 answer: ‘Inflation is when there is continuous rise in the price of the goods and services. Inflati...
— Examiner report, February/March 2025, 0455/22 Q4(d) (Cambridge)
The strong answers to this question contrasted how demand-pull inflation and cost-push inflation may affect producers. A number also distinguished between creeping inflation and hyperinflation, the effects on planning. borrowing and international competitiveness and the different impact on producers making products with elastic and inelastic demand. However, a number of candidates just stated poin...
— Examiner report, May/June 2022, 0455/22 Q2(d) (Cambridge)
The following answer is an excellent Level 3 response that comprehensively discusses both sides of the economic argument, in this case whether or not inflation is always a disadvantage to an economy: Inflation is not always a disadvantage to an economy. This is because countries want inflation to happen at a low and stable rate (L1) of no more than 2 per cent. Inflation is the general rise of pri...
— Examiner report, May/June 2022, 0455/23 Q2(d) (Cambridge)
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