What is the primary reason why economists and social scientists often convert raw data, such as industrial production or consumer spending, into index numbers?
To facilitate the easy comparison of relative changes over time or between different variables.
To automatically adjust nominal data to account for the rate of inflation.
To smooth out seasonal fluctuations and anomalies in the raw data.
To show the exact absolute changes in the values being measured.
187 exam-style questions on AQA A Level Economics 2.1 The measurement of macroeconomic performance, covering 2.1.1 The objectives of government economic policy, 2.1.2 Macroeconomic indicators, 2.1.3 Uses of index numbers, and 2.1.4 Uses of national income data (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.