On this day... 35 years ago – Inflation revision

This is an interesting article from 35 years ago which will help your pupils understand cost push inflation. The reason for inflation was an oil crisis which caused the price of oil to quadruple by 1974. I have written some GCSE style questions to go with the story. It may be useful to highlight the key aspects of the article to make it more suitable for GCSE pupils.

1. Explain, using examples, what is meant by demand pull inflation. (3 marks)

2. Explain, using examples what is meant by cost push inflation. (3 marks)

3. The article states that the government hoped to reduce inflation by controlling wages. Explain how this solution would reduce inflation. (4 marks)

4. Discuss the likely effects on inflation on the UK economy. (8 marks)