Routledge Dictionary of Economics, Second Edition
A price or output index which uses the weights of the original year.
The price index will be
where p1 are the prices of the later year, p0 are the prices of the base year and q0 are the ‘weights’ of the base year. The output index will be
where q1 are the quantities produced in the later year, p0 are the quantities produced in the base year and p0 are the prices of the base year being used throughout value quantities.
This is the complete article, containing 83 words
(approx. 1 page at 300 words per page).
View More Summaries on Price index
