Inflation and deflation: past paper questions
Real questions on inflation and deflation
The newest 20 of 23 written questions. Open one to see it on the real paper.
- 2281/22 · May/June 2026 · Q3a[2]
State what is meant by a fall in the inflation rate.
See it on the paper → - 2281/23 · October/November 2024 · Q1c[2]
Explain the type of inflation experienced by Belarus.
See it on the paper → - 2281/22 · May/June 2024 · Q3d[8]
Discuss whether or not an economy with a high inflation rate will have a low economic growth rate.
See it on the paper → - 2281/23 · 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 → - 2281/23 · October/November 2023 · Q5a[2]
Define Consumer Prices Index.
See it on the paper → - 2281/23 · October/November 2023 · Q5c[6]
Analyse how an increase in a country’s foreign exchange rate could reduce inflation.
See it on the paper → - 2281/21 · May/June 2023 · Q3d[8]
Discuss why some countries may experience lower inflation in the future and some may not.
See it on the paper → - 2281/21 · May/June 2022 · Q1f[5]
Analyse the relationship between inflation rates and current account balances.
See it on the paper → - 2281/21 · May/June 2022 · Q2c[6]
Analyse how an increase in income tax can affect a country’s inflation rate.
See it on the paper → - 2281/23 · October/November 2021 · Q3b[4]
Explain two ways an increase in wages can cause inflation.
See it on the paper → - 2281/21 · May/June 2021 · Q3c[6]
Analyse the advantages of a low rate of inflation.
See it on the paper → - 2281/21 · May/June 2021 · Q3d[8]
Discuss whether or not a fall in a country’s unemployment rate will reduce poverty in that country.
See it on the paper → - 2281/22 · May/June 2021 · Q3d[8]
Discuss whether inflation harms a country’s industries.
See it on the paper → - 2281/23 · October/November 2020 · Q5d[8]
Discuss whether or not deflation will benefit an economy.
See it on the paper → - 2281/21 · May/June 2020 · Q1h[6]
Discuss whether or not the increase in borrowing is likely to have caused inflation in Vietnam in 2017. 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 → - 2281/21 · May/June 2020 · Q2b[4]
Explain two consequences of deflation.
See it on the paper → - 2281/22 · May/June 2020 · Q1b[2]
Identify two possible causes of demand-pull inflation in Pakistan in 2017.
See it on the paper → - 2281/22 · October/November 2019 · Q6c[6]
6-mark question — its maths and diagrams are best seen on the paper.
See it on the paper → - 2281/23 · October/November 2019 · Q2c[6]
Analyse how lower unemployment may cause inflation.
See it on the paper → - 2281/23 · October/November 2019 · Q2d[8]
Discuss whether or not a country with high wage rates will have a high unemployment rate.
See it on the paper →
What examiners said
Most candidates understood what deflation in an economy meant. Strong answers tended to be better at explaining the drawbacks e.g. the greater uncertainty about prices, firms cutting output due to less profits and an increase in unemployment. Some correctly identified that lower prices made goods cheaper to export and more expensive to import and could improve the balance of payments. Weaker answe...
— Examiner report, October/November 2023, 2281/23 Q1(h) (Cambridge)
Some candidates were unclear about what a consumer price index (CPI) was, with some weak answers comparing it to a list of prices in a supermarket. Some knew an aspect of CPI e.g. it was a basket of goods or that it measures prices, but few were able to give a full answer. A typical response was ‘the proportion of income that consumers spend on a good’ which hints at the basket element of the CPI...
— Examiner report, October/November 2023, 2281/23 Q5(a) (Cambridge)
Most candidates knew what a foreign exchange rate was and how its appreciation affected import and export prices. Fewer were able to explain how this reduced demand-pull and cost-push inflation through reducing demand for exports and increasing imports of lower priced goods. Weaker answers only referred to lower inflation in general or stated that appreciation would increase import prices and lowe...
— Examiner report, October/November 2023, 2281/23 Q5(c) (Cambridge)
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