Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. What do you mean by Price index?
Because we are only interested in percentage change of the price level and not particular value, we can divide every price level by a given constant so that numbers are easier to deal with.
When we divide a series of price levels by a constant we end up with what is known as a time series of price indexes.
Using same basket as above, if we divide entire series by 607.70 we get following time series of price indexes:
Point in time
Jan 1, 2008
Feb 1, 2008
March 1, 2008
April 1, 2008
Price index
100
102.68
103.42
Reason for choosing 607.70 is that we want the index to be equal to 100 for the first point in time. Benefit of having an index which starts with 100 is that we would have a clearer picture of evolution of prices. We can, for instance, immediately determine that prices rose by 2.68% on average in January and by 3.42% during three months January to March.
Note that percentage change of the original price level and percentage change of price index is the same. Percentage change won't depend on which point in time we select as our 'base' (giving the price index a value of 100). Using price index, percentage change during January is (62400 - 60770)/60770 = 2, 68% that is exactly the same as percentage change of the price index.
The economy of Mainland has the following aggregate and aggregate supply schedules: Real GDP Demanded Real GDP Supplie
Regression Analysis This is a statistical tool which is used to discern the relationship among a dependent variable as like sales to one or more independent variables like adve
Describe elasticity? Differentiate demand elasticity and supply elasticity? What is arc elasticity? Please describe graphically with proper mathematical representation?
The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the United States, the monetary authority is t
In January of 1997, the U.S. Consumer Price Index (CPI) stood at 159.1. By January of 2008, the level had risen to 211.1. What was the average annual rate of inflation over this ti
what is the formula for calculating investment multiplier for 4 sector economy?
what is the difference between classical and non-classical model
Diagramatic explanation of pareto optimality
The elasticity of demand in the local hardware industry is -2, while in the video market it is. Which industry has a higher markup over marginal cost (as a percentage of price)?
Shambles, a large toy retailer, are looking at bringing out a new range of soft toys. The range under consideration is "Mythical Beasts." The "Mythical Beasts" range will cost £50
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd