The table shows the Human Development Index (HDI) values for two countries. What might explain the difference in the HDI values?

A.
Country \(X\) has double the inflation rate of country \(Y\).
B.
Country \(X\) has half the population of country \(Y\).
C.
Country X spends more of its real GDP on foreign aid than country Y .
D.
Country X spends more of its real GDP on schooling than country Y .
Economics
IGCSE&ALevel
CAIE
Exam No:0455_m25_qp_12 Year:2025 Question No:24

Answer:

D

Knowledge points:

4.8.1 definition of inflation and deflation
4.8.2 measurement of inflation and deflation : Measurement of inflation and deflation using the Consumer Prices Index (CPI).
4.8.3 causes of inflation and deflation: demand-pull and cost-psh inflation/ demand-side and supply-side
4.8.4 consequences of inflation and deflation : consumers, workers, savers, lenders, firms and the economy as a whole.
4.8.5 policies to control inflation and deflation: The range of policies available to control inflation and deflation and how effective they might be.

Solution:

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