O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2025 · Q241 Mark
A Consumer Prices Index (CPI) consists of four items. The table shows the percentage price change for each item over a period of a year and the weight of each item. Which price change will affect the level of the CPI most?
Aitem: food, % price change over 1 year: +5, weight: 0.30
Bitem: housing, % price change over 1 year: +6, weight: 0.20
Citem: recreation, % price change over 1 year: +3, weight: 0.40
Ditem: transport, % price change over 1 year: +4, weight: 0.10
✓ Correct answer
A: item: food, % price change over 1 year: +5, weight: 0.30
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