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Inflation

Exam code: 2281
3 hours · 51 questions
11 mark

Some goods take a greater percentage of a typical household’s total spending than others.

How is this accounted for in the construction of a consumer prices index?

  • A.

    by deducting the goods

  • B.

    by giving a weight to the goods

  • C.

    by taking an average of price fluctuations during a year

  • D.

    by using the price elasticity of demand for the goods

Choose your answer
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