The table below shows the annual unemployment rate and the annual rate of inflation (measured by the Consumer Prices Index) for an economy between 2021 and 2023.
| Year | Unemployment rate (%) | Inflation rate (%) |
|---|---|---|
| 2021 | 4.2 | -0.5 |
| 2022 | 4.8 | 1.2 |
| 2023 | 5.3 | 0.8 |
Which one of the following can be deduced from the data?
The absolute number of unemployed workers increased in each year of the period.
The average price level fell between 2022 and 2023.
There was a continuous inverse relationship between the rate of inflation and the rate of unemployment throughout the three-year period.
The purchasing power of a unit of currency rose in 2021, but fell in both 2022 and 2023.
187 exam-style questions on AQA A Level Economics 2.1 The measurement of macroeconomic performance, covering 2.1.1 The objectives of government economic policy, 2.1.2 Macroeconomic indicators, 2.1.3 Uses of index numbers, and 2.1.4 Uses of national income data (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.