Short Answer Question Help (1 Viewer)

[crazy_paki123]

Yer this is the question from the 2009 HSC Q 21 (a)

http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2009exams/pdf_doc/2009-hsc-economics.pdf

 

[NBGHHS]

Housing, since its weighting in the cpi is a major factor.
I got the CPI expenditure by group and found the percentages of that expenditure that would be counted in the CPI and housing came up on top.
I think this is the right way to do it.

Edit: LOL JOKESSSS, the answer was food

okay im stumped here...any eco geniuses know how to get to answer?

 

[tarod]

Inflation is always calculated from a base year where the CPI is 100.

So the increase in price CPI is:
Food: 120-100= 20, etc.
times this by the weighing factor to get which group contributes the most.

 

[crazy_paki123]

i get it now. thanks ur the best