Sakshi's expenditure on “education and communication" as a percentage of her total expendure is much highe than the weightage given to "education and communication" in the basket prepared by the government for CP calculation. If the inflation in the "education and communication" category much higher than overall inflation then, for Sakshi, A. CPI overstates inflation B. CPI understates inflation C. It cannot be concluded whether CPI overstates or understates inflation D. Education and communication are not important.

Sakshi's expenditure on “education and communication" as a percentage of her total expendure is much highe than the weightage given to "education and communication" in the basket prepared by the government for CP calculation. If the inflation in the "education and communication" category much higher than overall inflation then, for Sakshi, A. CPI overstates inflation B. CPI understates inflation C. It cannot be concluded whether CPI overstates or understates inflation D. Education and communication are not important.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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