The Consumer Prices Index (CPI) increases from 125 to 130 in a given year. This indicates that
the average price level has increased by 4%4\%4% over the year.
the rate of inflation has increased by 5%5\%5% over the year.
the price of every item in the consumer basket has risen by 4%4\%4%.
the cost of living has risen by exactly 5%5\%5% for all individual households.
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.