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.
Financial Development A well developed financial system is very essential for the smooth functioning of any economy. One set of important statistical indicators that is used to
State the macroeconomic policy The view that macroeconomic policy must only focus on supply-side performance of economy and should ignore management of the demand side is an ex
Economics Please Help! Assume that two power plants, Firm 1 and Firm 2, release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard. To meet the sta
Suppose three identical firms are engaged in Cournot competition in quantities. They all have marginal costs equal to 40. Market demand is given by: P(X) = 200 - X = 200 - (x
Suppose the own price elasticity of demand for good X is -5, its income elasticity is 2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and go
Treatment of Na2PdCI4 with 3-chloro-2-methyl-1-propene under an atmosphere of CO yields the dimer [(11 3 - C 4 H 7 )PdClb (A). The 1H NMR spectrum of A at 298 K shows 3 signals: a
Problem 1 a. Define ERP. Explain the terminology related to ERP. b. How ERP evolved in a system? a. Definition. >>Description on point of sale, MRP-I, MRP-I
reason why the change in equilibrium of output is greater than the change in initial invest ..
The events X and Y are mutually exclusive. Suppose P(X)=.05 and P(Y) =.02. What is the probability of either X or Y occurring? What is not probability of X nor Y happens?
Consider an economy that having only of those who bake bread and those who make its ingredients. Assume that this economy's production is as follows: 1 million loaves of bread
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