53In the basket of goods that is used to compute the consumer price index, the three largestcategories of consumer spending arehousing, transportation, and recreation.a.b.housing, transportation, and food & beverages.housing, food & beverages, and education & communicationc.housing, medical care, and education & communicationd.

Question
Asked Oct 24, 2019
53
In the basket of goods that is used to compute the consumer price index, the three largest
categories of consumer spending are
housing, transportation, and recreation.
a.
b.
housing, transportation, and food & beverages.
housing, food & beverages, and education & communication
c.
housing, medical care, and education & communication
d.
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53 In the basket of goods that is used to compute the consumer price index, the three largest categories of consumer spending are housing, transportation, and recreation. a. b. housing, transportation, and food & beverages. housing, food & beverages, and education & communication c. housing, medical care, and education & communication d.

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Step 1

The consumer price index (CPI), measures the average level of prices of the basket of goods and services.

The CPI basket includes housing, transportation, food and beverages, medical care, recreation, education and communication, apparel , and other goods and services.

The CPI basket is based on a consumer expenditure survey.

Step 2

When we weight the basket of goods and services, then three largest categories of  consumer spending are housing, transportation, and...

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