Economists compare annual changes in production costs and total spending in four economies. Inflation occurred in each economy.
| Economy | Production costs | Total spending |
|---|---|---|
| A | +5% | 0% |
| B | 0% | +6% |
| C | +2% | +8% |
| D | +7% | +6% |
Which economy's figures provide the clearest evidence that inflation is cost-push rather than demand-pull?
Economy B
Economy D
Economy C
Economy A
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.