Question

Price Index of Export (PX ) =0.56 , Price index of import (PM) = 0.23 Export Productivity Index (ZX) = 0.12 Import Productivity Index (ZM) = 0.15 Find out the value of Double Factor Terms of trade.​

Answer 1

To convert to a percentage:

Year-to-year index point change = -5.8

Divide the point change by the previous period of 168.4 (for Oct. 2016)

Divide -5.8 / 168.4 = -0.034

Convert the decimal to a percent:

Multiply 100 by -.034 = -3.4%

In other words, the year-to-year percentage change in the export price index was -3.4% from Oct. 2016 to Oct. 2017.

Answer 2

To convert to a percentage:

Year-to-year index point change = -5.3

Divide the point change by the previous

period of 168.4 (for Oct. 2016)

Divide -5.8 / 168.4 = -0.034

Convert the decimal to a percent:

Multiply 100 by -.034 =-3.4%

In other words, the year-to-year

percentage change in the export price

index was -3.4% from Oct. 2016 to Oct.

2017.