Economics A-Level
Price stability
What Price stability means in Economics A-Level, as defined for AQA.
Definition of Price stability
Check what you remember
Read the wording for your board, then hide it and explain Price stability in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Maintaining a low and stable rate of inflation, usually defined in the UK as a 2% CPI inflation target, to maintain purchasing power and business confidence.
Topics that use Price stability
- The objectives of government economic policy (AQA A-Level)
Related terms
- Inflationary pressure
- Macroeconomic trade-offs
- Minimising unemployment
- Policy evaluation
- Policy trade-offs
- Stable balance of payments on current account
Using Price stability in the exam
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