A local archive has a fixed annual budget of £40,000. The general price level falls between one year and the next. Which statement about the archive's budget in the second year is correct?
Its real value has risen while its nominal value is unchanged
Its real value has fallen while its nominal value is unchanged
Its real value and its nominal value are both unchanged
Its nominal value has risen while its real value is unchanged
62 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.