Which combination of changes is most likely to result in a fall in living standards in a country? GDP inflation population What would not be required in the construction of an index of consumer prices? What may be concluded from this information? What is not required in the construction of an index of consumer prices? The table gives information about three economic indicators in four countries. What can be concluded from the information provided about inflation, interest rates, and unemployment in different countries? An economy is experiencing rising prices. Which government policy will help reduce consumer expenditure? Some goods take a greater percentage of a typical household’s total spending than others. How is this accounted for in the construction of a consumer prices index? The table shows the Consumer Prices Index (CPI) of an economy. What can be concluded from the data? Deflation is a sustained fall in the general price level. What might cause deflation? The table shows some data about an economy. What happened in year 1? What is included in the construction of the Consumer Prices Index (CPI)? An economy has a high rate of inflation. In response to this, its government increases income tax. What is the most likely reason for this increase? A country’s inflation rate, measured by the Consumer Prices Index (CPI), was 3% in year 1. Three years later, it was 0.8%. What can be concluded from this information? What will deflation most likely lead to? In a year, two changes occurred in a company. Company directors’ salaries increased by 15 % , Office workers’ wages increased by 5% The rate of inflation was 3.4%. What happened to real income? The table shows changes in the Consumer Prices Index (CPI) from the base year, 1, and for the next three years. Which statement is correct? What is likely to happen when a country is experiencing deflation? In a year, two changes occurred in a company. Company directors’ salaries increased by 15 % . Office workers’ wages increased by 5% . The rate of inflation was 3.4%. What happened to real income? The table shows the Consumer Prices Index (CPI) of a country for five years. Which statement about the country is correct? What may cause deflation? In a year, two changes occurred in a company. Company directors’ salaries increased by 15 % . Office workers’ wages increased by 5% . The rate of inflation was 3.4%.What happened to real income? An economy is operating with all resources fully employed. Which would be an outcome of a significant increase in government expenditure? Why is weighting used in the Consumer Prices Index (CPI)? An economy recorded a second month of deflation. What does this mean? What is a cause of demand-pull inflation? How is the rate of inflation measured? What is always indicated by an increase in the Consumer Prices Index (CPI)? Which combination is necessary for the construction of a consumer prices index? What is deflation? A government has a target of keeping inflation between 2% and 3%. The diagram shows the rate of inflation over a four-year period. What can be deduced from the diagram?