ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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C=I=G=(X-M)
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Number of Unemployed Persons / Labor Force.
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(Cost of basket in current period/Cost of basket in base period) × 100
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Y = C + I + G + X + Z.
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Detailed explanation-1: -To find the CPI in any year, divide the cost of the market basket in year t by the cost of the same market basket in the base year. The CPI in 1984 = $75/$75 x 100 = 100 The CPI is just an index value and it is indexed to 100 in the base year, in this case 1984.
Detailed explanation-2: -It is based upon the index average for the period from 1982 through 1984 (inclusive), which was set to 100. So a CPI reading of 100 means that inflation is back to the level that it was in 1984, while readings of 175 and 225 would indicate a rise in the inflation level of 75% and 125%, respectively.
Detailed explanation-3: -Currently, the reference base for most CPI indexes is 1982-84=100 but some indexes have other references bases. The reference base years refer to the period in which the index is set to 100.0. In addition, expenditure weights are updated every two years to keep the CPI current with changing consumer preferences.
Detailed explanation-4: -Gather prices for common products or services in the past. Collect prices for current products or services. Add the product prices together. Divide the current product price total by the past price total. Multiply the total by 100. Convert this number into a percentage. 13-Jan-2021