A-LevelEconomicsThe macroeconomy9708/12 · Feb/Mar 2021 · 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]

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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

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

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2021 Paper 1 Variant 2, question 27.

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