Index numbers are economic barometer. Explain
Answers
Index number is a number which expresses the relative change in magnitude of a variable or number of variables during a specified period. ... The index numbers are known as economic barometer or economic indicators since they help in understanding the changes in economic conditions of the society.
please mark me as brainliest
Answer: Index numbers are economic barometers. Explain?
Explanation: Index numbers are economic barometers. Index numbers measures the level of business and economic activities and are therefore helpful in gauging the economic status of the country. Index number is a special type of average that helps to measure the economic fluctuations on price level, money, market, economic cycle like inflation deflation etc. It helps the government by giving the percentage of change of prices of different commodities with respect to a specified base year (any previous year whose economic activity is ideal) and current year and thus helping the government for changing the policies or regulating new policies or measures to attain the stability. Hence they are also know as economic barometers and economic indicators since they help in understanding the changes in economic conditions of the society.