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2.3 Economic performance

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Question 102

An economy is experiencing deflation, which is a sustained decrease in the general price level. Under these conditions, the real value of household disposable income will decrease if and only if:

A

nominal incomes fall by a greater percentage than the general price level.

B

nominal incomes remain constant while the general price level decreases.

C

nominal incomes fall by a smaller percentage than the general price level.

D

nominal incomes rise by a smaller percentage than the general price level falls.

Markscheme

2.3 Economic performance Questions

  1. A Level
  2. /Economics
  3. /2.3 Economic performance

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.

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