Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

The table presents the percentage price changes for some items in the UK Consumer Price Index (CPI) during the year to 1 June 2006. Over the same period, the overall CPI rose by 2.5 %. What conclusion can be drawn from the information above?

  • AThe CPI is not an accurate measure of inflation.
  • BSome prices must have fallen.
  • CThe average price increase of other items was less than 2.5 %.
  • DThe real value of money rose by more than 2.5 %.

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