The table below shows the annual inflation rate for an economy over five consecutive years:
| Year | Annual inflation rate (%) |
|---|---|
| Year 1 | +8.0 |
| Year 2 | +3.0 |
| Year 3 | -2.0 |
| Year 4 | -4.0 |
| Year 5 | +1.0 |
Which of the following statements is correct?
The economy experienced deflation between Year 1 and Year 2 as the inflation rate decreased from +8.0%+8.0\%+8.0% to +3.0%+3.0\%+3.0%.
The average price level in Year 3 was lower than the average price level in Year 1.
The economy experienced disinflation between Year 1 and Year 2, and deflation between Year 2 and Year 3.
The average price level fell continuously from Year 1 to Year 4.
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.