A-LevelEconomicsThe macroeconomy9708/12 · May/June 2017 · Q201 Mark
Which statement about changing price levels is correct?
AAnyone on a fixed income has rising real income during deflation.
BGovernment revenue from indirect taxes falls during inflation.
CProducers prefer deflation to inflation.
DSavers prefer index-linked savings when there is deflation rather than inflation.
✓ Correct answer
A: Anyone on a fixed income has rising real income during deflation.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill The macroeconomy and see which topics are most likely to come up next.
Sign up free →