Evaluate the view that a low rate of inflation is always beneficial for a country’s macroeconomic performance
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
A-Level Economics Tutoring
I offer one-to-one and small group A-Level Economics tutoring for students across the UK and internationally. With 87+ five-star Google reviews and tutoring experience since 2017, I specialise in helping students understand difficult concepts and improve their exam technique.