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CAIE IGCSE Economics 4.7.1 Definitions of Inflation and Deflation Questions

Practise Cambridge IGCSE Economics by defining inflation and deflation, interpreting price-level data and comparing inflation statistics across economies.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Define inflation as a sustained rise in the general price level and deflation as a sustained fall.
  • Interpret price-level graphs and inflation data to identify inflation, deflation and changes in purchasing power.
  • Distinguish inflation from related macroeconomic measures and use unemployment/inflation statistics to compare economies.

CAIE IGCSE Economics 4.7.1 Definitions of Inflation and Deflation Questions question 1

[Maximum number: 1]

The graph shows changes in the average price level.

Figure for Question CAIE IGCSE Economics 4.7.1 Definitions of Inflation and Deflation Questions question 1 — CAIE IGCSE Economics

When did the country experience deflation?

A

year 2 to year 5

B

year 2 to year 3

C

year 2 to year 4

D

year 4 to year 5

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