Price indexes compare basket costs
Price indexes compare basket costs
A price index compares the cost of the same basket of goods and services in two years. The base year is given an index value of 100.
Step-by-step lessons on OCR GCSE Economics 3.4.3 Calculate the effect of inflation. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.