Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

The table presents the UK’s annual inflation rate from 2005 to 2010, as measured by the retail price index (RPI) and the consumer price index (CPI). What is a correct conclusion from the table?

  • AThe RPI and the CPI both record a fall at some time in the general price level in the UK.
  • BThe RPI and the CPI both show the same direction of change in inflation in each year.
  • CThe RPI records a lower rate of total inflation for the whole period than the CPI.
  • DThe RPI records a more unstable rate of inflation than the CPI.

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