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CAIE A-Level Economics AS 4.6.5 Consequences of Inflation Questions

Practise explaining how inflation changes purchasing power, living standards and business decisions, then assess policy trade-offs with CAIE Economics AS questions.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Explain how demand-pull and cost-push inflation affect purchasing power, living standards, firms and macroeconomic policy choices.

CAIE A-Level Economics AS 4.6.5 Consequences of Inflation Questions question 1

[Maximum number: 1]

If a country is experiencing a period of high inflation, which groups will benefit the most from this?

companies that
export the majority
of their output

fixed income
earners

those with
high debts

yes

yes

no

no

yes

yes

yes

no

no

no

no

yes

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