Analyse inflation using economic concepts and models
This standard asks you to explain what causes inflation and what impact it has on people and businesses in New Zealand, using economics models and concepts. You need to show you understand inflation by using the right economic models and explaining your thinking clearly—not just repeating what you've been told.
You show you understand inflation causes and impacts by using economic models correctly, shifting curves in the right direction with clear reasons, and explaining how inflation affects different groups in society.
You explain in detail which causes have greater impact on inflation by comparing the shifts on your models to the final price level; you distinguish between disinflation and deflation using data; you explain the quantity theory of money equation properly and compare how different groups are affected.
You analyse comprehensively by comparing and contrasting causes of inflation and their impacts side by side; you integrate the model shifts directly into detailed explanations; you explain thoroughly how changes like increased velocity of circulation affect both price level and real output.
Standards typically taken alongside or after this one. Same subject, grouped by level.