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Inflation

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Question 20

The table below shows the Consumer Price Index (CPI) of an economy over a four-year period:

YearConsumer Price Index (CPI)2020100.02021108.02022112.02023110.0 \begin{array}{|c|c|} \hline \text{Year} & \text{Consumer Price Index (CPI)} \\ \hline 2020 & 100.0 \\ \hline 2021 & 108.0 \\ \hline 2022 & 112.0 \\ \hline 2023 & 110.0 \\ \hline \end{array} Year2020202120222023​Consumer Price Index (CPI)100.0108.0112.0110.0​​

Which of the following statements correctly describes the macroeconomic conditions of this economy?

A

The economy experienced deflation between 2021 and 2022, followed by disinflation between 2022 and 2023.

B

The economy experienced disinflation between 2021 and 2022, followed by deflation between 2022 and 2023.

C

The economy experienced disinflation between 2020 and 2021, followed by deflation between 2021 and 2022.

D

The economy experienced deflation throughout the entire period from 2021 to 2023.

Markscheme

Inflation Questions

  1. A Level
  2. /Economics
  3. /Inflation

77 exam-style questions on OCR A Level Economics Inflation. Each one has a worked solution and a mark scheme showing where the marks go.

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