Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

The figures present the consumer prices index (CPI) and an index of money wages in an economy over four years. year 1-4 CPI 100,102,105,110 index of money wages 100,102,107,110 Which statement is incorrect?

  • AInflation was at its greatest between years 3 and 4.
  • BReal wages remained constant between years 1 and 2.
  • CReal wages rose between years 3 and 4.
  • DThe rate of inflation increased over the whole period.

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