The table below shows an economy's rate of inflation in each of four consecutive years.
| Year 1 | Year 2 | Year 3 | Year 4 | |
|---|---|---|---|---|
| Inflation rate (%) | 5.5 | 4.2 | 3.0 | 1.8 |
It can be concluded from the data above that, over the 4-year period,
the purchasing power of money has increased.
assuming constant nominal incomes, real income has fallen.
the average price level was lower in Year 4 than in Year 1.
the value of money fell at an increasing rate.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.