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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]

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. This question tests the candidate's understanding of macroeconomic policy objectives 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) Feb/Mar 2021 examination, Paper 1 Variant 2. It tests the topic of Macroeconomic Policy Objectives and is worth 1 mark.

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