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1

What does an index number do?

Compares the price change of an item with its base year price

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2

How to calculate index numbers

(price/base year price)*100

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3

What does an index number mean?

100=increase

<100=decrease

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4

What’s the retail price index?

Shows a rate of change of prices of everyday goods

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5

Examples of what the RPI is about

Mortgages, food and heating

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6

What’s the consumer price index?

Official measure of inflation used by UK government

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7

What’s the difference between RPI and CPI?

CPI doesn’t include mortgage payments

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8

What’s the gross domestic product?

Value of goods and services produced in a country in a given amount of time

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9

What means an economy is in recession?

If the GDP falls for 2 or more quarters

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10

What does a weighted index number do?

It takes into account proportions

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11

How to calculate the weighted index number

(sum of (index number*weight))/sum of weights

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12

What does a chain base index number do?

Compares prices from each year to the previous year

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13

How to calculate CBIN

(price/last year’s price)*100

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14

What kind of index numbers are RPI and CPI?

CBIN that show annual or monthly changes

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15

What’s the crude birth rate?

Number of births per thousand of the population

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16

What’s the crude death rate?

Number of deaths per thousand of the population

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17

How to calculate crude rate

(number of births or deaths/total population)*1000

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18

What’s the standard population?

Hypothetical population of 1000 people used to represent the whole population

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19

How to calculate standard population

(number in age group/total population)*1000

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20

What does a standardised rate do?

Allows you to compare the same age group in different populations.

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21

How to calculate the standardised rate

(crude rate/1000)*standard population

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