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A-LevelEconomicsInflation and DeflationOct/Nov 2014Paper 1 Q281 Mark

Which economic change might contribute to both cost-push and demand-pull inflation?

Afall in the exchange rate
Bfall in the interest rate
Crise in the productivity of industrial workers
Dan improvement in the terms of trade

✓ Correct Answer

The correct answer is A. This question tests the candidate's understanding of inflation and deflation within the Economicssyllabus. The examiner's mark scheme requires...

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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Oct/Nov 2014 examination, Paper 1 Variant 2. It tests the topic of Inflation and Deflation and is worth 1 mark.

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