O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2012 · Q331 Mark
A government has a target of keeping inflation between 2% and 3%. The diagram shows the rate of inflation over a four year period. What can be deduced from the diagram?
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.
AThe government target was missed in two years.
BThe price level fell in two years.
CThe price level was at its highest in the first year.
DThe real value of money fell in three years.
✓ Correct answer
D: The real value of money fell in three years.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Government and the macroeconomy and see which topics are most likely to come up next.
Sign up free →