Economics 2281 · O Level · Inflation and deflation

Inflation and deflation — practice question

The table presents the percentage changes in earnings and consumer prices for four countries over a single year. Which country is most likely to have had the largest rise in real income during that 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

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI