Economics 2281 · O Level · Inflation and deflation

Inflation and deflation — practice question

What decides the weights used in the consumer prices index (CPI)?

  • Athe average income received by the various households
  • Bthe average increase in the prices of the different goods
  • Cthe proportion of income spent by the average household on particular goods
  • Dthe proportion of income that the average household saves

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