A-LevelEconomicsThe macroeconomy9708/12 · May/June 2018 · Q201 Mark
The diagrams show the inflation rate over time in four countries. Which country experiences a falling cost of living throughout the period?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
ADiagram A showing inflation rate starting positive and falling towards zero, but remaining positive over time.
BDiagram B showing inflation rate starting positive, falling, and then rising again, remaining positive over time.
CDiagram C showing inflation rate (linear decrease) starting positive, crossing zero, and becoming negative over time.
DDiagram D showing inflation rate (curved decrease) starting positive, crossing zero, and becoming negative over time.
✓ Correct answer
D: Diagram D showing inflation rate (curved decrease) starting positive, crossing zero, and becoming negative over time.
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