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National Income Concepts-First 2
National Income Concepts-First 2
GNP being the monetary measure of all final goods and services
produced, is widely used as an index for judging the performance
of an economy.
The LASPEYRES INDEX for the n-th period is obtained by the following
formula:
L=100 x Σ pni q0i
Σ p0i q0i
The PAASCHE INDEX for the n-th period is obtained by the following
formula:
P= 100 x Σ pni qni
Σ p0i qni
INDEX number, measures the average
change in price for a fixed buying
pattern.
The INDEX for the n-th period is obtained
by the following formula:
For the above example, we have:
L1:0 = 100 x (776.06x102.1 +
3345.56x1.8)/(562.48x102.1+2677x1.8) = 136.9616
P1:0 = 100 x (776.06x87.9 +
3345.56x2.7)/(562.48x87.9.1+2677x2.7) = 136.3084
I = (Square root of L * P)
NEW SERIES ON
NATIONAL ACCOUNTS STATISTICS
WITH 1993-94 AS THE BASE YEAR