Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

For what reason is weighting applied in the Consumer Prices Index (CPI)?

  • Ato ensure that all items in the index are treated equally
  • Bto ensure that all price changes are included in the index
  • Cto ensure that the index includes changes in the quantity consumed
  • Dto ensure that the index reflects the spending patterns of consumers

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