What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to price stability. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on price stability, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- defining inflation as a rise in the price of one product;
- saying disinflation means prices fall;
- calculating inflation using the base year of 100 rather than the previous-period CPI;
- confusing the CPI index level with the inflation rate;
- using the total population as a CPI weight;
- claiming a nominal income increase automatically means a real-income increase;
- shifting SRAS to explain demand-pull inflation;
- shifting AD to explain a pure cost-push shock;
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Price Stability revision notes.