A-LevelEconomicsMacroeconomic Objectives / Inflation / Fiscal PolicyOct/Nov 2021Paper 1 Q241 Mark
There is an increase in indirect taxes. What will be the impact on demand-pull inflation and on cost-push inflation?
Ademand-pull inflation: fall; cost-push inflation: fall
Bdemand-pull inflation: fall; cost-push inflation: rise
Cdemand-pull inflation: rise; cost-push inflation: fall
Ddemand-pull inflation: rise; cost-push inflation: rise
✓ Correct Answer
The correct answer is B: demand-pull inflation: fall; cost-push inflation: rise
📋 Examiner Report & Trap Analysis
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...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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