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.
An antenna in free-space driven by current Io radiates far-field E as: for 0 ≤ Φ ≤ π, here C = constant = 0 everywhere else a) Compute the power density, b) Compute t
Reducing the budget deficit by cutting government spending could conceivably: A. increase income if interest rates rise enough and government spending is more productive than priva
When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in a. the demand for this wine b. the supply of
By what percentage did the price level, as measured by this index, rise between 1984 and 2005?
Explain the apparent paradox that saving money is good for the individual but might be bad for the economy. Considering the circular flow diagram how is this relevant to public pol
This problem substitutes financial health with housing in a 2 period consumption savings model. The representative consumer has the utility function u(c1, c2) = lnc1 + lnc2 with ea
Derive that the complex amplitude of the double convex lens shown in the image below with focal length 1/f = (n-1 ) (1/R 1 - 1/R 2 ). Hint: we derived an plano convex lens in cla
what does phillip curve signify? how do you reconcile the difference in the shap of the curve in the short run and the long run?
Trends of Trade Shares: India's share in total world exports in 1950 was 1.85 percent and the share in total world imports was 1.7 1 percent. The share of both exports and imp
Singer suggests that although the right to sell blood does not threaten the formal right to give blood, it is incompatible with "the right to give blood, which cannot be bought, wh
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