Index Numbers Flashcards
1
Q
What are index numbers?
A
a figure reflecting price or quantity compared with a base value
2
Q
What is the index number of the base value?
A
100
3
Q
How do you create an index from a set of absolute values?
A
- Choose a base year and set the index in that base year equal to 100.
- Divide the absolute value in all future years by the base year and multiply by 100 to get the index numbers for those years.
