The table below shows the annual rate of inflation in an economy over a four-year period.
| Year 1 | Year 2 | Year 3 | Year 4 | |
|---|---|---|---|---|
| Inflation rate (%) | -4.5 | -3.2 | -2.0 | -0.5 |
It can be concluded from the data that, over the four-year period,
the purchasing power of money fell.
the average price level was higher in Year 4 than in Year 1.
assuming constant nominal incomes, real income has increased.
the value of money rose 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.