Uses of Index Numbers (AQA A-Level Economics): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Base year value in an index
Base year value in an index
100
Index value of 105 = % change from base year
Index value of 105 = % change from base year
5% increase
CPI (Consumer Prices Index) measures
CPI (Consumer Prices Index) measures
Changes in price level of representative basket of goods/services
CPIH vs CPI difference
CPIH vs CPI difference
CPIH includes housing costs (mortgage) & Council Tax
Real GDP vs Nominal GDP
Real GDP vs Nominal GDP
Real adjusted for inflation; Nominal at current prices
Approx. no. of goods/services in CPI shopping basket
Approx. no. of goods/services in CPI shopping basket
700
Purpose of weighting items in CPI
Purpose of weighting items in CPI
Items weighted by significance in household budgets
Frequency of CPI shopping basket review/update
Frequency of CPI shopping basket review/update
Annually
FTSE 100 base value when launched (1984)
FTSE 100 base value when launched (1984)
1,000
Importance of same base year in index comparisons
Importance of same base year in index comparisons
Essential for valid comparisons of levels between series