Economics (AS & A Level) · Oct / Nov 2023 · Paper 11 · Question 27
9708Price stability
Over a period of a year, the annual rate of inflation becomes negative. Which statement must be correct?
- AThe cost of living has fallen.
- BThe purchasing power of money has fallen.
- CThe standard of living has increased.
- DThere has been an increase in the Consumer Price Index.
As printed in the paper
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Correct answer: A. The cost of living has fallen.
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