A-LevelEconomicsThe macroeconomy9708/12 · May/June 2025 · Q161 Mark
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?
AFor price stability to occur, there must be no changes in prices of any products.
BFor price stability to occur, the number of products whose prices rise must exactly match the number whose prices fall.
CIf some prices rise and others fall, there cannot be price stability.
DDifferent weightings of items used in the calculation of CPI mean that price stability can occur in many ways.
✓ Correct answer
D: Different weightings of items used in the calculation of CPI mean that price stability can occur in many ways.
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