IB skill practice

Analyse unemployment and inflation

Economics SL macroeconomics skill with original exam-style diagram, data-response, and policy-evaluation seeds.

Paper 1, Paper 2 5 marks Difficulty 4

Explain cost-push inflation

A local Auckland policy extract reports a sharp rise in fuel and imported input prices. Explain the inflationary pressure. Enter the answer and choose the interpretation that best matches the macroeconomic evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.