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2.3 Economic performance

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Question 13

The table below shows the annual rate of consumer price inflation for an economy over a three-year period:

YearAnnual Inflation Rate (%)Year 1+5.0Year 2+1.2Year 3−2.0 \begin{array}{|c|c|} \hline \text{Year} & \text{Annual Inflation Rate (\%)} \\ \hline \text{Year 1} & +5.0 \\ \hline \text{Year 2} & +1.2 \\ \hline \text{Year 3} & -2.0 \\ \hline \end{array} YearYear 1Year 2Year 3​Annual Inflation Rate (%)+5.0+1.2−2.0​​

Ceteris paribus, which of the following statements can be correctly concluded from the data?

A

The purchasing power of the country's currency increased between Year 1 and Year 2.

B

The average level of consumer prices was higher in Year 2 than in Year 1.

C

The average cost of living fell between Year 1 and Year 2.

D

The economy experienced deflation in both Year 2 and Year 3.

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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