Price index
What Price index means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Price index
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Reference: Pearson Edexcel
A measure used to convert a nominal value to a real value, with a value of exactly 100 in the base year.
A measure used in converting nominal values to real terms, with the base year index usually set at 100.
Topics that use Price index
- Appendix 3: Quantitative skills (Pearson Edexcel A-Level)
- Growing economies (Pearson Edexcel A-Level)
Related terms
- Base year
- Index numbers
- Nominal values
- Real values
- Cross elasticity of demand
- Data interpretation
- Demand-pull inflation
- Economic growth
Using Price index in the exam
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