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We know that the CPI is a weighted price index, made up of a variety of categories, such as housing, food, recreation, etc.Let's assume that
We know that the CPI is a weighted price index, made up of a variety of categories, such as housing, food, recreation, etc.Let's assume that the price of recreation (which accounts for roughly 5% of total expenditures in the CPI basket), rises by 30% in one year, while the prices of all other goods rise by 5% in that same year.Given this information, by how much did the CPI rise that year?
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6.25%
5%
8.25%
4.25%
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