U7 - Index numbers

Question 1

What are index numbers?

Answer 1

Numbers that compare the price of an item with a base year price. The base year price has index number 100

Question 2

Difference between Retail Price Index and Consumer Price Index

Answer 2

They both measure the rate of price changes in everyday life, but the CPI does not include mortgage payments

Question 3

Interpret Gross Domestic Product

Answer 3

GDP is the value of goods and services a country produces within a stated time period

Question 4

When is an economy in recession?

Answer 4

When its GDP falls in two (or more) successive quarters

Question 5

What are chain base index numbers?

Answer 5

Numbers that compare prices from each year with the previous year

Question 6

What is the RPI and CPI?

Answer 6

Chain base index numbers that show annual or monthly percentage changes in price

Question 7

What is the crude death rate?

Answer 7

The number of deaths per thousand of the population