A-LevelEconomicsInflationMay/June 2010Paper 1 Q241 Mark
Which statement about inflation is correct?
ACost-push inflation is likely to occur when the government increases its expenditure.
BDemand-pull inflation is likely to occur when the country's exchange rate appreciates.
CThe Quantity Theory of Money predicts that changes in money supply can cause inflation.
DWhen inflation is unanticipated real values remain unchanged.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of inflation within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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