Economics Multiple Choice Question – 5 August 2019

The table below shows the inflation rate for an economy between 2012 and 2015.

What can be concluded from the information?

Select ONE answer:

1. The price level was lowest in 2014.
2. The price level was lowest in 2016.
3. The economy experienced deflation over the whole period.
4. The value of money rose over the whole period.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

1. Correct: The price level rose over the period 2014 to 2017 and so it was at its lowest in 2014.
2. The price level did fall in 2016 but it was still higher than in 2014.
3. The economy experienced deflation in 2016 but over the period the price level rose.
4. The value of money fell over the period as the price level rose.

 

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