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Cambridge AS & A Level Economics

4.6Price stability

Price stability in Cambridge AS & A Level Economics: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic51 practice questions2 lessons

Learning objectives

What the syllabus expects you to be able to do.

  1. 4.6.1Define inflation, deflation and disinflation.
  2. 4.6.2Explain the measurement of changes in the price level with the CPI and the difficulties of measurement.
  3. 4.6.3Distinguish money (nominal) values from real data.
  4. 4.6.4Explain the causes of inflation: cost-push and demand-pull.
  5. 4.6.5Explain the consequences of inflation.

Lessons

  • Inflation, deflation and disinflation: causes, consequences and control

    60 min

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  • Price indices, inflation and real values

    60 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Price stability: sample question

1 mark

Which of the following is most likely to cause demand-pull inflation?

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Turn Price stability into a strength.

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