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Practice Exam Questions

Policies to Avoid Deflation MCQ Revision Question

AS, A-Level, IB
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 21 Mar 2021

Here is an answer to a multiple choice question on deflation in the Swedish economy.

MCQ Revision Question: Policies to Avoid Deflation

Deflation is a sustained fall in the general price level. The right answer to the question provides a combination of both expansionary fiscal and monetary policy in a bid to raise the level of aggregate demand and help (over time) restore price stability.

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