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Figure 1 shows the rate of inflation in the UK between February 2009 and August 2013 - Edexcel - GCSE Business - Question 1 - 2018 - Paper 1

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Figure 1 shows the rate of inflation in the UK between February 2009 and August 2013. UK Inflation ![Figure 1](http://www.economichelp.org/blog/2665/inflation/diff... show full transcript

Worked Solution & Example Answer:Figure 1 shows the rate of inflation in the UK between February 2009 and August 2013 - Edexcel - GCSE Business - Question 1 - 2018 - Paper 1

Step 1

Which of the following is shown in the graph?

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Answer

The correct answer is B. Prices rose between 2011 and 2013. The graph illustrates an increase in the inflation rate during this period.

Step 2

Identify two factors that can cause economic growth.

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Answer

  1. Increase in consumer spending.
  2. Improvement in technology.

Step 3

Outline one potential disadvantage of a monopoly to consumers.

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Answer

Consumers may experience limited choice of products. This occurs because there is no competition in the market, which restricts variety and innovation.

Step 4

Explain one benefit to businesses of a fall in interest rates.

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Answer

One benefit is that businesses are more willing to borrow money. Lower interest rates mean reduced borrowing costs, which can lead to increased investment in growth and expansion.

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