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2.1 The measurement of macroeconomic performance

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Question 5

Extract C: Household Energy Expenditures and Disposable Incomes in Zendia, 2013 and 2023

According to official statistics, household energy costs across Zendia have risen sharply over the past decade. While nominal disposable incomes have also grown, the rate of increase has varied significantly by province. Economists often evaluate standard of living using real disposable national income metrics, but regional household-level analysis of essential expenditures (like energy) offers critical insights into the actual purchasing power of residual incomes.

Table 1: Household energy affordability indicators in selected provinces of Zendia, 2013 and 2023

RegionYearAverage Monthly Energy Bill (£)Average Monthly Disposable Household Income (£)Energy Bill as a % of IncomeConsumer Price Index (CPI) (2013 = 100)
Northern Province20131502,5006.0%100.0
20233203,10010.3%128.2
Southern Province20131203,6003.3%100.0
20232304,3005.3%128.2
Western Province20131402,8005.0%100.0
20232903,4008.5%128.2
National Average20131353,0004.5%100.0
20232753,6007.6%128.2

Using the data in Extract C, assess the extent to which household energy was more affordable in Zendia in 2013 than it was in 2023.

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2.1 The measurement of macroeconomic performance Questions

  1. A Level
  2. /Economics
  3. /2.1 The measurement of macroeconomic performance