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Why is real income more useful than cash income for measuring living standards?
A
2%−2.9%=−0.9%
2\% - 2.9\% = \mathbf{-0.9\%}
2%−2.9%=−0.9%
B
The basket costs 2.9% more than in the base year.
C
Prices have risen since the base year.
D
It measures what income can actually buy after allowing for price changes.
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3.4.3 Calculate the effect of inflation Flashcards
20 flashcards on OCR GCSE Economics 3.4.3 Calculate the effect of inflation: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.