A-LevelEconomicsMacroeconomics: Inflation and UnemploymentMay/June 2012Paper 1 Q251 Mark
A country experienced a significant fall in unemployment but its inflation rate remained low. What could explain this?
AGlobal competition prevented firms passing on higher costs.
BIncreased spending on imports had lowered the exchange rate.
CThere was a low level of spare capacity in the economy.
DWage rates had increased by more than labour productivity.
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of macroeconomics: inflation and unemployment 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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