IB Economics SL 3.3.4 Low & stable inflation
IB Economics SL 3.3.4 Low & stable inflation
Students practise defining inflation, calculating CPI-based inflation rates, and explaining redistributive effects or CPI limitations using Tokyo or Türkiye data.
How this is tested
- define inflation as a sustained rise in the general price level, not a one-off price increase
- calculate inflation from CPI data using percentage change, accepting sensible rounded answers
- explain how inflation harms fixed-income earners while reducing the real burden on debtors