plumiInflation and deflation: AQA A‑Level Economics questions
Every AQA A-Level Economics exam question on 4.2.3.3 Inflation and deflation, 2020–2025, with its mark scheme and examiner’s report.
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![June 2025 Paper 2, question 12: Evaluate the view that a low rate of inflation is always beneficial for a country’s macroeconomic performance. [25 marks] Essay 2 In 2023, the UK government all](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71362-jun25-e2-12-qp.webp)
![June 2025 Paper 3, question 29: All other things being equal, which one of the following is most likely to be a consequence of inflation in the UK? [1 mark] A The amounts outstanding on househ](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71363-jun25-a-29-qp.webp)
![June 2024 Paper 2, question 10: Assess whether an increase in the money supply is always damaging for an economy. [25 marks] Essay 1 In November 2022, the Bank of England warned there was a ri](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71362-jun24-e1-10-qp.webp)
![June 2024 AS Paper 2, question 06: Disinflation exists when [1 mark] A an economy experiences a fall in the cost of living. B deflation has occurred for two or more successive quarters. C nominal](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71352-jun24-a-06-qp.webp)
![June 2024 AS Paper 2, question 23: Use Extract A to identify two significant points of comparison between inflation and the growth in average weekly real earnings over the period shown. [4 marks]](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71352-jun24-c1-23-qp.webp)
![June 2023 AS Paper 2, question 17: An economy is experiencing deflation and high employment. The most likely cause of this situation is a [1 mark] A deficit on the balance of payments. B governme](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71352-jun23-a-17-qp.webp)
![June 2023 AS Paper 2, question 21: Define ‘deflation’ Extract C (line 2). [3 marks] Context 1 Total for this context: 50 marks INFLATION Extract A: UK inflation rate (%), measured by CPI, January](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71352-jun23-c1-21-qp.webp)
![June 2022 AS Paper 2, question 06: A deflationary policy is designed to A avoid deflation. B increase aggregate demand. C lead to deflation. D reduce aggregate demand. [1 mark]](https://pub-e8a9dbab8e2a4d089f52b2a45e0d0b50.r2.dev/bank/71352-jun22-a-06-qp.webp)
All 19 questions on Inflation and deflation, as a list
- June 2025, Paper 2, Q03 (9 marks): Extract B (lines 6–7) states: ‘Some analysts hope that, before long, the currency will start to appreciate which could help Norway reduce inflation.’ With the h
- June 2025, Paper 2, Q12 (25 marks): Evaluate the view that a low rate of inflation is always beneficial for a country’s macroeconomic performance. [25 marks] Essay 2 In 2023, the UK government all
- June 2025, Paper 3, Q29 (1 mark): All other things being equal, which one of the following is most likely to be a consequence of inflation in the UK? [1 mark] A The amounts outstanding on househ
- June 2025, AS Paper 2, Q25 (10 marks): Extract B (lines 6–7) states: ‘A shortage of labour is one of the factors that has contributed to rising inflation, threatening macroeconomic stability.’ Explai
- June 2024, Paper 2, Q03 (9 marks): Extract C (lines 4–5) states ‘Energy and food bills had risen dramatically due to shocks to the economy, such as labour shortages, a depreciation of the pound…’
- June 2024, Paper 2, Q10 (25 marks): Assess whether an increase in the money supply is always damaging for an economy. [25 marks] Essay 1 In November 2022, the Bank of England warned there was a ri
- June 2024, Paper 3, Q28 (1 mark): Table 9 shows the price index for an economy at the end of each of the years from 2019 to 2023. Table 9 Year Price index 2019 110 2020 108 2021 117 2022 123 202
- June 2024, AS Paper 2, Q06 (1 mark): Disinflation exists when [1 mark] A an economy experiences a fall in the cost of living. B deflation has occurred for two or more successive quarters. C nominal
- June 2024, AS Paper 2, Q10 (1 mark): Country W is operating at its normal capacity level of output. When one of its trading partners experiences economic growth, this leads to a rise in demand for
- June 2024, AS Paper 2, Q23 (4 marks): Use Extract A to identify two significant points of comparison between inflation and the growth in average weekly real earnings over the period shown. [4 marks]
- June 2023, Paper 3, Q12 (1 mark): The quantity theory of money can be explained using Irving Fisher’s equation of exchange, MV=PQ. Monetarist economists believe that the theory helps to explain
- June 2023, AS Paper 2, Q17 (1 mark): An economy is experiencing deflation and high employment. The most likely cause of this situation is a [1 mark] A deficit on the balance of payments. B governme
- June 2023, AS Paper 2, Q21 (3 marks): Define ‘deflation’ Extract C (line 2). [3 marks] Context 1 Total for this context: 50 marks INFLATION Extract A: UK inflation rate (%), measured by CPI, January
- June 2022, Paper 2, Q07 (9 marks): Extract E (lines 7–9) states: ‘It was hoped that policy measures, including a reduction in tariffs... would help to reduce inflation’. With the help of a diagra
- June 2022, Paper 2, Q08 (25 marks): Extract E (lines 15–17) states: ‘Policies were put in place to reduce the money supply and reduce government spending. The control of inflation became the main
- June 2022, Paper 3, Q10 (1 mark): In an economy, an index showing the change in the money supply multiplied by the velocity of circulation increases from 100 to 115.5. At the same time, the fina
- June 2022, AS Paper 2, Q06 (1 mark): A deflationary policy is designed to A avoid deflation. B increase aggregate demand. C lead to deflation. D reduce aggregate demand. [1 mark]
- November 2020, Paper 3, Q13 (1 mark): Table 2 shows the inflation rate and the rate of growth of the money supply for an economy between 2016 and 2019. Table 2 Year Inflation Rate of growth of money
- November 2020, AS Paper 2, Q12 (1 mark): Figure 3 shows an economy’s aggregate demand (AD) and short-run aggregate supply (SRAS) curves. Figure 3 The initial equilibrium price level is at OP1. Which on
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