Economics A-Level
Depreciation
What Depreciation means in Economics A-Level, as defined for AQA.
Definitions of Depreciation
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Depreciation in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
An automatic fall in a currency's value caused by factors shifting the supply and demand curves, such as changes in relative interest rates, inflation rates, or speculative expectations.
A fall of the pound sterling against other currencies, which makes imported raw materials and finished goods more expensive and directly increases the UK's general price level.
Topics that use Depreciation
- Exchange rate systems (AQA A-Level)
- Inflation and deflation (AQA A-Level)
Related terms
- Aggregate demand
- Appreciation
- Asymmetric economic shock
- Balance of payments
- Cost-push inflation
- Currency union
- Debt and wealth effects
- Deflation
Using Depreciation in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Economics A-Level termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge