1
Q
Name 2 reasons to use index numbers
A
- Easy to analyse
- Avoids comparison of potentially huge numbers
- Useful to analyse range of economic data:
House prices
Inflation
Exchange rates
Economic growth
2
Q
What is the base year?
A
The selected point at which the other raw data is compared to.
3
Q
What is the number for the base year?
A
100
4
Q
What’s the formula for percentage change?
A
Old - New
————— X100
Old
5
Q
How do you calculate index numbers?
A
RawNumber
——————————- X100
BaseYearRawNumber
6
Q
How do you calculate real GDP
A
Macro Economics
flashcards
Decks in class (36)
# Cards
-
2.1.1 - Economic growth22
-
2.1.2 - Inflation47
-
2.1.3 - Employment and unemployment28
-
2.1.4 - Balance of payment22
-
2.2.1 - The characteristics of aggregate demand12
-
2.2.2 - Cosumption15
-
2.2.3 - Investment18
-
2.2.4 - Government expenditure29
-
2.2.5 - Net trade (X-M)17
-
2.3.1 - The characteristics of aggregate supply11
-
2.3.2 - Short run aggregate supply6
-
2.3.3 - Long run aggregate supply16
-
2.4.1 - National income16
-
2.4.2 Injections and withdrawals8
-
2.4.3 - Equilibruim levels of real national output11
-
2.4.4 - The multiplier20
-
2.5.1 - Causes of growth26
-
2.5.2 - Output gaps10
-
2.5.3 - Trade (business) cycle20
-
2.5.4 - The impact of economic growth15
-
2.6.1 - Possible macroeconomic objectives10
-
2.6.2 - Demand-side policies2
-
2.6.3 - Supply-side policies21
-
2.6.4 - Conflicts and trade-offs between objectives and policies0
-
Index numbers6
-
4.1.1 - Globalisation16
-
4.1.2 - Specialisation and trade15
-
4.1.3 - Pattern of trade10
-
4.1.4 - Terms of trade14
-
4.1.5 - Trading blocs and the World Trade Organisation0
-
4.1.6 - Restrictions on free trade3
-
4.1.7 - Balance of payments9
-
4.1.8 - Exchange rates25
-
4.1.9 - Internation competitiveness0
-
4.2.1 - Absolute and Relative Poverty0
-
4.2.2 - Inequality4
