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Practice exam questions

Policies to Avoid Deflation MCQ Revision Question

  • Levels: AS, A Level, IB
  • Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC

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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