Part 1
·Read the following passage. Eight sentences have been removed from the article.
·Choose from the sentences A-H the one which fits each gap.
·For each gap (1-8) mark one letter (A-H) on the Answer Sheet..
Most people associate inflation with price increases on specific goods and services. (1) We must be careful to distinguish the phenomenon of inflation from price increases for specific goods. (2)
Suppose you wanted to know the average price of fruit in the supermarket. (3) You might have some success, however, if you sought out the prices of apples, oranges, cherries, and peaches. Knowing the price of each kind of fruit, you could then compute the average price of fruit. The resultant figure would not refer to any particular product, but would convey a sense of how much a typical basket of fruit might cost. (4) On occasion, you might even notice that apple prices rose while orange prices fell, leaving the average price of fruit unchanged.
The same kinds of calculations are made to measure inflation in the entire economy. We first determine the average price of all output—the average price level—then look for changes in that average. (5)
The average price level may fall as well as rise. (6) The deflation occurs when price decreases on some goods and services outweigh price increases on all others.
(7) We already noted, for example, that the price of apples can rise without increasing the average price of fruit, so long as the price of some other fruit (e.g. oranges) falls. (8) An increasing in the relative price of apples, for example, simply means that apples have become more expensive in comparison with other fruits (or any other goods or services).

(1) should choose （）