asked 16.9k views
3 votes
Why is gasoline weighted more heavily than tomatoes in a calculation of the annual inflation rate in the United States

asked
User Jans
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2 Answers

2 votes

Just took the test it is

D). Americans spend more money on gasoline than tomatoes, on average.

Hope that helps any one else!!!!

answered
User Turkenh
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8.1k points
4 votes
One of the most probable reason is because compared to tomatoes, gasoline more of a kind of product that traded within international borders from US' perspectives. This kind of products will be exposed to more factors that could influence the annual inflation rate.

hope this helps
answered
User Dima Mamchur
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8.0k points
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