Inflation rate question 2009 HSC (1 Viewer)

[godofindolence]

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

http://puu.sh/kzh9H/c4bfd66104.png
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For question 21a, can someone explain why the correct answer is food?

 

[milkman007]

I'm not sure if this is all technically correct, but using 100 as the base for CPI.

Food: 0.15*20=3
Housing: 0.2*10=2
Health: 0.05*50=2.5

Therefore, food contributes most to the inflation rate.

 

[godofindolence]

I'm not sure if this is all technically correct, but using 100 as the base for CPI.

Food: 0.15*20=3
Housing: 0.2*10=2
Health: 0.05*50=2.5

Therefore, food contributes most to the inflation rate.

Oh you genius, thanks! That actually makes so much sense!

 

[milkman007]

No problem