Which is preferable inflation of deflation? (25 marker)

The key to getting into the top band of the mark scheme for 25 markers is to show sustained evaluation throughout the response.A very useful formula for answering these sorts of questions is to start with some standard chains of analysis, include a diagram with the chain before arguing using the sign post "it depends on" for the rest of the essay.Making sure to include real world figures of inflation rates and examples or inflation deflation around the world.If this 25 marker is one of the first questions in the exam then you will have to quote from the text that is provided.

Related Economics A Level answers

All answers ▸

Explain the difference between short term growth and long term growth


To what extent might a government implement an expansionary fiscal policy?


Explain what is meant when it is said that there are inefficiencies in the production of goods and the allocation of resources.


Discuss the macroeconomic impacts of deflation on an economy.