Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

The table gives the percentage changes in earnings and consumer prices in four countries over a one-year period. Which country is most likely to have seen the largest rise in real income during the year?

  • AFrance: earnings $+6.5$, consumer prices $+3.5$
  • BGermany: earnings $+4.0$, consumer prices $+4.0$
  • CJapan: earnings $+4.0$, consumer prices $-1.0$
  • DUK: earnings $+6.5$, consumer prices $-2.0$

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