AS & A Level / Economics / Inflation, employment and stability Question practice
Inflation, employment and stability About this practice Original, unofficial practice. Evaluative marking points are indicative: credit equivalent justified arguments, one point per distinct criterion, without double counting.
Accept equivalent valid methods and supported interpretations that address the task. Award each mark once; matching the model wording is not required.
Economics Inflation, employment and stability
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1 Explain the difference between disinflation and deflation, including what happens to the general price level. Easy 2 marks No calculator + 2 Fictional case: a fixed consumption basket costs 250 in the base year and 275 now. Calculate the current price index with base 100 and inflation since the base year. Easy 2 marks Calculator + 3 Fictional case: an oil-price shock raises firms' costs while output falls. Analyse the aggregate supply effect and why demand contraction has a trade-off. Medium 4 marks No calculator + 4 Fictional case: 720000 people are employed, 80000 unemployed and actively seeking work, and 200000 outside the labour force. Calculate the unemployment rate. If 20000 unemployed people stop seeking work, with employment unchanged, calculate the new rate and interpret it. Medium 4 marks Calculator + 5 Fictional case: retail workers lose jobs as sales move online. Evaluate retraining subsidies compared with a general spending stimulus as a response. Hard 4 marks No calculator + 6 Fictional case: firms expect persistent inflation after a temporary food shortage. Evaluate whether a central bank should react to expectations even if the original shortage may soon end. Hard 4 marks No calculator + Self-assessed Not marked yet
Set total 20
This is a self-study tool, not a certified answer key or a predicted AS & A Level grade.
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Original questions, not official past papers. Marking guidance is indicative, not an official answer key. Check your exam-board specification.
