Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

A trade union says that, over the last five years, its members have seen their real income fall. What must have occurred for this to be true?

  • AIncome tax rates have increased.
  • BPrices have risen.
  • CSavings have fallen.
  • DWages adjusted for inflation have fallen.

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