O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2018 · Q211 Mark
What determines the weights 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
✓ Correct answer
C: the proportion of income spent by the average household on particular goods
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