Table 1 shows a household spending index and an average wage cost index for one economy over five consecutive periods. Both indices equal 100 in Period 1.
| Period | Household spending index | Average wage cost index |
|---|---|---|
| 1 | 100 | 100 |
| 2 | 107 | 102 |
| 3 | 106 | 102 |
| 4 | 108 | 111 |
| 5 | 115 | 118 |
Between which two periods do the data give the clearest evidence that inflationary pressure came from firms' wage costs rather than from household demand?
Period 2 to Period 3
Period 4 to Period 5
Period 1 to Period 2
Period 3 to Period 4
189 exam-style questions on AQA GCSE Economics 2.2 Government objectives, covering 2.2.1a The main economic objectives, 2.2.1b Conflicts between government objectives, 2.2.1c Other objectives and ethical considerations, 2.2.2a The significance of economic growth, 2.2.2b Causes, costs, benefits and policies for growth, 2.2.2c GDP measures and calculations, 2.2.3a Measuring employment and unemployment, 2.2.3b Types and causes of unemployment, 2.2.3c Consequences and policies for unemployment, 2.2.4a What inflation is, 2.2.4b Measuring inflation with the CPI, 2.2.4c Causes, consequences and control of inflation, 2.2.5a Balance of trade and balance of payments, 2.2.5b Current account surpluses and deficits, 2.2.5c Policies to influence the balance of payments, 2.2.6a Income and wealth inequality in the UK, 2.2.6b Causes and consequences of inequality, and 2.2.6c Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.