Economics 2281 · O Level · Inflation and deflation

Inflation and deflation — practice question

The table gives the weights assigned to the three items in a Consumer Prices Index (CPI) for two years. What conclusion can be drawn from this data?

  • AClothing prices have fallen.
  • BLiving standards remain unchanged.
  • CThe average price level is unchanged.
  • DThe proportion of income spent on food has risen.

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