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Britain & the wider world: 1745 -1901
1l the quest for political stability: germany, 1871-1991
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2d religious conflict and the church in england, c1529-c1570
2o democracy and nazism: germany, 1918-1945
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1c the tudors: england, 1485-1603
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Economics
9 Dec 2025
55
2 pages
Tanvir Ahmed @txnvir_ahmed
Understanding what causes inflation is crucial for grasping how the economy works and why prices change. These scenarios... Show more
Ever wondered why your favourite snacks cost more this year than last year? The answer lies in understanding different inflation scenarios that affect our economy every day.
There are three main ways prices can change in an economy. Demand-pull inflation happens when everyone wants to buy more stuff but there isn't enough to go around. Cost-push inflation occurs when it becomes more expensive to make things, forcing businesses to charge higher prices. Sometimes prices can even fall when demand drops significantly.
Each scenario involves specific economic triggers that you'll recognise from news headlines. Learning these patterns helps you understand why your weekly shop might cost more or why certain products become cheaper over time.
Demand-pull inflation kicks in when there's too much money chasing too few goods. This happens when French demand for UK exports grows, the pound falls against the euro (making our stuff cheaper abroad), or when the Bank of England prints more money. Government spending on things like EMAs nationwide or big infrastructure projects also pumps money into the economy, alongside increased business investment and people remortgaging their homes to spend.
Cost-push inflation works differently - it's about rising production costs. When UK raw materials become pricier, oil and gas prices surge, or the pound weakens (making imports expensive), businesses pass these costs onto consumers. Government policies like minimum wage increases or successful union pay strikes also push up business costs.
Key Insight A weaker pound can cause both types of inflation - it makes exports cheaper but imports more expensive !
Price levels can actually fall during economic trouble. US recessions reduce American demand for UK exports, whilst a stronger pound makes our goods expensive abroad but imports cheaper. When consumer confidence drops and unemployment rises, people spend less, forcing prices down to attract buyers.
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
You can download the app from Google Play Store and Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
1
Smart Tools NEW
Transform this note into: ✓ 50+ Practice Questions ✓ Interactive Flashcards ✓ Full Mock Exam ✓ Essay Outlines
Explore the complexities of inflation, including demand-pull and cost-push factors, the Retail Price Index (RPI), Consumer Price Index (CPI), and the implications of monetary policy. This comprehensive summary covers key concepts such as stagflation, deflation, and the effects of inflation on purchasing power and income distribution, tailored for Edexcel A Level Economics students.
EconomicsExplore the key concepts of inflation, including demand-pull and cost-push inflation, the Consumer Prices Index (CPI), and the implications of stagflation and deflation. This summary provides insights into how inflation affects consumers, firms, and government revenue, along with historical context and limitations of inflation measurement. Ideal for A-Level Economics students.
EconomicsExplore the key concepts of inflation in this comprehensive 4-page summary. Learn about demand-pull and cost-push inflation, their causes, effects on the economy, and the relationship with unemployment. This resource is tailored for AQA AS Economics students and includes self-test questions to reinforce your understanding.
EconomicsExplore the key components of company accounts, including the Income Statement and Balance Sheet. This summary highlights the main users of financial statements, their purposes, and the importance of assessing profitability and financial position. Ideal for CCEA GCE A2 Business Studies students, this resource aids in understanding how financial data influences decision-making for managers, investors, and stakeholders.
EconomicsExplore the intricacies of the Balance of Payments (BoP) including trade balances, capital inflows, and government interventions. This summary covers key concepts such as trade deficits, current and financial accounts, and the impact of exchange rates on international trade. Ideal for Year 2 macroeconomics revision.
EconomicsExplore comprehensive insights into profitability ratios, balance sheet analysis, and strategic management for GlaxoSmithKline plc's financial performance in 2017 and 2018. This resource includes detailed calculations, key financial metrics, and practical exam questions to enhance your understanding of business effectiveness and financial management.
BusinessApp Store
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
Tanvir Ahmed
@txnvir_ahmed
Understanding what causes inflation is crucial for grasping how the economy works and why prices change. These scenarios show the real-world factors that can either push prices up through increased demand or costs, or even cause them to fall during... Show more
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Ever wondered why your favourite snacks cost more this year than last year? The answer lies in understanding different inflation scenarios that affect our economy every day.
There are three main ways prices can change in an economy. Demand-pull inflation happens when everyone wants to buy more stuff but there isn't enough to go around. Cost-push inflation occurs when it becomes more expensive to make things, forcing businesses to charge higher prices. Sometimes prices can even fall when demand drops significantly.
Each scenario involves specific economic triggers that you'll recognise from news headlines. Learning these patterns helps you understand why your weekly shop might cost more or why certain products become cheaper over time.
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Demand-pull inflation kicks in when there's too much money chasing too few goods. This happens when French demand for UK exports grows, the pound falls against the euro (making our stuff cheaper abroad), or when the Bank of England prints more money. Government spending on things like EMAs nationwide or big infrastructure projects also pumps money into the economy, alongside increased business investment and people remortgaging their homes to spend.
Cost-push inflation works differently - it's about rising production costs. When UK raw materials become pricier, oil and gas prices surge, or the pound weakens (making imports expensive), businesses pass these costs onto consumers. Government policies like minimum wage increases or successful union pay strikes also push up business costs.
Key Insight: A weaker pound can cause both types of inflation - it makes exports cheaper but imports more expensive !
Price levels can actually fall during economic trouble. US recessions reduce American demand for UK exports, whilst a stronger pound makes our goods expensive abroad but imports cheaper. When consumer confidence drops and unemployment rises, people spend less, forcing prices down to attract buyers.
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
You can download the app from Google Play Store and Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
1
Smart Tools NEW
Transform this note into: ✓ 50+ Practice Questions ✓ Interactive Flashcards ✓ Full Mock Exam ✓ Essay Outlines
Explore the complexities of inflation, including demand-pull and cost-push factors, the Retail Price Index (RPI), Consumer Price Index (CPI), and the implications of monetary policy. This comprehensive summary covers key concepts such as stagflation, deflation, and the effects of inflation on purchasing power and income distribution, tailored for Edexcel A Level Economics students.
EconomicsExplore the key concepts of inflation, including demand-pull and cost-push inflation, the Consumer Prices Index (CPI), and the implications of stagflation and deflation. This summary provides insights into how inflation affects consumers, firms, and government revenue, along with historical context and limitations of inflation measurement. Ideal for A-Level Economics students.
EconomicsExplore the key concepts of inflation in this comprehensive 4-page summary. Learn about demand-pull and cost-push inflation, their causes, effects on the economy, and the relationship with unemployment. This resource is tailored for AQA AS Economics students and includes self-test questions to reinforce your understanding.
EconomicsExplore the key components of company accounts, including the Income Statement and Balance Sheet. This summary highlights the main users of financial statements, their purposes, and the importance of assessing profitability and financial position. Ideal for CCEA GCE A2 Business Studies students, this resource aids in understanding how financial data influences decision-making for managers, investors, and stakeholders.
EconomicsExplore the intricacies of the Balance of Payments (BoP) including trade balances, capital inflows, and government interventions. This summary covers key concepts such as trade deficits, current and financial accounts, and the impact of exchange rates on international trade. Ideal for Year 2 macroeconomics revision.
EconomicsExplore comprehensive insights into profitability ratios, balance sheet analysis, and strategic management for GlaxoSmithKline plc's financial performance in 2017 and 2018. This resource includes detailed calculations, key financial metrics, and practical exam questions to enhance your understanding of business effectiveness and financial management.
BusinessApp Store
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
Sociology