Extract 1: Norland prices Norland measures inflation using a Consumer Price Index. Food and energy prices have risen rapidly, while wages and savings interest have changed more slowly.
| Measure | Period 1 | Period 2 |
|---|---|---|
| CPI | 124 | 130.2 |
| Average nominal wage | £31,000 | £32,240 |
| Savings interest rate | 2% | 3% |
Using Extract 1, calculate the inflation rate between Period 1 and Period 2.
Explain one difference between a nominal value and a real value.
Analyse how 5% inflation may affect Norland's consumers.
State two stages involved in constructing the CPI.
Explain one consequence of inflation for savers.
Evaluate whether price stability is more important than faster economic growth for Norland.
30 exam-style questions on OCR GCSE Economics 3.4 Price stability, covering 3.4.1 Price stability and inflation, 3.4.2 Measuring inflation with CPI, 3.4.3 Calculate the effect of inflation, 3.4.4 Analyse inflation figures, and 3.4.5 Causes and consequences of inflation. Each one has a worked solution and a mark scheme showing where the marks go.