A-LevelEconomicsMacroeconomic Policy ObjectivesFeb/Mar 2021Paper 1 Q271 Mark

The diagram shows the rate of inflation over time in four countries. Which country has a rising real value of money over time? [diagram]

Q: What topic does this question test?

This question tests Macroeconomic Policy Objectives in A-Level Economics (syllabus code 9708). It is worth 1 mark.

AInflation rate starts positive, decreases to negative, then increases to zero

BInflation rate starts positive, decreases but remains positive

CInflation rate is constant at zero

DInflation rate starts negative, decreases further (becomes more negative), then increases to zero

✓ Correct Answer

The correct answer is D: Inflation rate starts negative, decreases further (becomes more negative), then increases to zero

📋 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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About This A-Level Economics Question

Topic

This multiple-choice question tests Macroeconomic Policy Objectives in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2021 examination, Paper 1 Variant 2.

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