Inflation — Edexcel Past Paper Questions

UK inflation, as measured by the CPI, rose to 10.1% in the 12 months to July 2022, compared to 2.0% in the 12 months to July 2021. (Source: adapted from https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/july2022) Evaluate macroeconomic policies, apart from monetary policy, the UK government could use to reduce inflation.

One of two options in Section C — candidates answered this or the other.

2.1.2 Inflation · 2.6.2 Demand-Side Policies

Examine two reasons for the rise in inflation in the UK. Refer to the information provided in your answer.

2.1.2 Inflation

With reference to Extract C, discuss the potential conflicts between macroeconomic objectives when the central bank attempts to control inflation.

2.6.4 Conflicts Between Objectives · 2.1.2 Inflation

Evaluate the likely microeconomic and macroeconomic effects of relatively high inflation rates in many African countries.

One of two options in Section B — candidates answered this or the other.

2.1.2 Inflation

With reference to the information provided and your own knowledge, examine two factors which might explain the change in the rate of Eurozone inflation as shown in Figure 2.

2.1.2 Inflation

Global oil prices fell from a 2008 peak of $147 a barrel to $27 in 2016. Evaluate the likely macroeconomic consequences of a significant fall in global oil prices.

One of two options in Section C — candidates answered this or the other.

2.1.2 Inflation · 2.3.2 Short-Run Aggregate Supply