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Economics (AS & A Level) · Feb / March 2024 · Paper 32 · Question 19

9708Economic growth

Over the period of a year, nominal national income increased by 2%, inflation was 3% and population increased by 1%. Which statement is correct?

  1. AReal income decreased by 2% per head.
  2. BReal income increased by 1% per head.
  3. CReal income increased by 4% per head.
  4. DThere was no change in real income per head.

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Correct answer: A. Real income decreased by 2% per head.

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