Economics (AS & A Level) · May / June 2025 · Paper 12 · Question 16

Price stability can be said to occur if the measured value of the consumer prices index (CPI) is unchanged during the year. Which statement is correct?

1. AFor price stability to occur, there must be no changes in prices of any products.
2. BFor price stability to occur, the number of products whose prices rise must exactly match the number whose prices fall.
3. CIf some prices rise and others fall, there cannot be price stability.
4. DDifferent weightings of items used in the calculation of CPI mean that price stability can occur in many ways.

As printed in the paper