CAIE A-Level Economics 10.2.5 Inflation & unemployment

CAIE A-Level Economics 10.2.5 Inflation & unemployment
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise interpreting inflation and unemployment trade-offs using Phillips curves, data tables, expectations and policy targets.

How this is tested

  • interpret unemployment and inflation data to identify Phillips curve relationships
  • use short-run and long-run Phillips curves to predict effects of demand changes
  • evaluate policy targets by linking lower unemployment to inflationary pressure

Question 21

[Maximum number: 1]

What does the Phillips curve show?

A

the relationship between economic growth and employment

B

the relationship between inequality and income per capita

C

the relationship between inflation and unemployment

D

the relationship between prices and national income