‘Measuring changes in the cost of living is fraught with methodological challenges, yet it is vital for indexing pensions, benefits, and assessing macroeconomic stability.’
Explain how the Office for National Statistics (ONS) constructs index numbers to measure the rate of consumer price inflation in the UK, and analyse the key differences in coverage and calculation between the Consumer Prices Index (CPI) and the Consumer Prices Index including owner occupiers' housing costs (CPIH).
187 exam-style questions on AQA A Level Economics 2.1 The measurement of macroeconomic performance, covering 2.1.1 The objectives of government economic policy, 2.1.2 Macroeconomic indicators, 2.1.3 Uses of index numbers, and 2.1.4 Uses of national income data (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.