base year is also known as
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Answer:
current year reference periodic both a and c
Answer:
A base year is a particular year that is used as a comparison point for economic or financial statistics from various time eras. Other names for it include basis year and foundation year. The idea of a base year is frequently applied in economics to compute and track changes in the cost of products and services over time.
Explanation:
Common applications of the base year include:
- Calculation of inflation: The base year is used to determine the inflation rate for the succeeding years. Economists can determine how the buying power of money has changed over time by comparing current-year costs of products and services to prices in a base year.
- Calculating the gross domestic product (GDP) : The foundation year is used as a benchmark to gauge the economy's expansion over time. Economists can calculate the percentage change in real GDP by comparing the value of products and services created in the current year to those produced in the base year.
The foundation year is used to build a variety of economic statistics, including the consumer price index (CPI), the wholesale price index (WPI), and others. These indices offer a snapshot of the base year's typical prices for products and services during a specific time frame.
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