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# Evaluate the view that a low rate of inflation is always beneficial for a country’s macroeconomic performance
- URL: https://www.a-level-economics-tutor.com/evaluate-the-view-that-a-low-rate-of-inflation-is-always-beneficial-for-a-countrys-macroeconomic-performance/
- Published: 2026-05-15T13:08:13.000Z
- Updated: 2026-05-15T13:08:13.000Z
- Author: Jaisul Naik
- Tags: AQA 25 mark question

### AQA A-Level Economics Paper 2 June 2025

**Evaluate the view that a low rate of inflation is always beneficial for a country’s macroeconomic performance. (25 marks)**

- **Paragraph 1**
  - **Argument: low inflation is beneficial, especially compared to the damaging effects of a wage-price spiral or a deflationary spiral**
  - **Diagram: negative multiplier**
  - **Evaluation: depends on the cause e.g. AD shifting right can cause cyclical unemployment**
- **Paragraph 2**
  - **Argument: persistent low inflation can suggest poor performance as it can suggest the economy is experiencing a negative output gap**
  - **Diagram: spare capacity using AD and LRAS**
  - **Evaluation: however, a negative output gap could be a sign of a strong supply-side**

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