Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

In a developing country, real incomes have increased. Which situation would definitely have led to this?

  • Aprice level fell; money incomes fell
  • Bprice level fell; money incomes rose
  • Cprice level rose; money incomes unchanged
  • Dprice level rose; money incomes fell

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