CAIE A-Level Economics 4.6.1 Inflation, Deflation and Disinflation

CAIE A-Level Economics 4.6.1 Inflation, Deflation and Disinflation
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise distinguishing a rising, falling or more slowly rising general price level from inflation-rate graphs and calculating cumulative changes across successive periods.

How this is tested

  • identify inflation as a rising price level, deflation as a falling level and disinflation as slower rises
  • read an inflation-rate graph to determine whether prices rose or fell in each period
  • compound successive inflation or deflation rates rather than simply adding percentage changes

Question 22

[Maximum number: 1]

The diagram shows changes in a country's price level over a number of years.
During which period of time did only disinflation occur?

Figure for Question 22 — CAIE A-Level Economics
A

from the start of 2020 to the end of 2025

B

from the start of 2021 to the end of 2022

C

from the start of 2021 to the end of 2023

D

from the start of 2023 to the end of 2024