Question

(3) The production of an item in the year 2015 has increased by 3 times the production
in the base year. Find the index number of production for the year 2015.​

Answer 1

Step-by-step explanation:

The base year is the year in which an index is set to 100. While computing macroeconomic numbers such as inflation or economic growth rates, indices are used. To monitor prices, the statistical agencies of the government will choose a basket of goods, and set the value of this basket to 100, for a chosen base year.