A country has recorded the following annual changes to its main macroeconomic indicators over the period 2020 to 2023:
| Year | CPI inflation (%) | Average household income growth (%) at current prices |
|---|---|---|
| 2020 | 2.5 | 3.1 |
| 2021 | 3.2 | 1.8 |
| 2022 | 1.4 | 0.9 |
| 2023 | 0.8 | 1.2 |
Which one of the following can be concluded from the data?
Nominal average household income decreased in both 2021 and 2022
The real value of average household income fell in both 2021 and 2022
Average prices fell continuously between 2021 and 2023
The average price level was lower in 2023 than in 2020
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.