May/June 2026 Paper 32

2026 · 30 questions · 30 parts · 30 marks

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21InflationHard1 mark
The graphs show consumer prices and unemployment for a country between 2002 and 2007.
line graph of consumer prices, shown as the percentage increase on a year earlier, from 2002 to 2007: about 3.0% in 2002, rising slightly to about 3.2% in 2003, falling sharply to about 1.3% in 2004, then rising steadily to about 1.6% in 2005, 2.4% in 2006 and 2.7% in 2007
line graph of unemployment as a percentage of the labour force, with a broken vertical axis starting near zero, from 2002 to 2007: about 4.4% in 2002, rising to about 4.7% in 2003, then falling steadily to about 4.3% in 2004 and 4.2% in 2005, before levelling off at about 4.15% from 2006 to 2007
What can be concluded from the graphs?