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Sir I watched the opentution lectures
And I do not understand what is the benefit of price index ….
And what is the meaning of “price index “
There is no ‘benefit’, but it is of interest to people.
For example, although I do not know which country you live in, if the price index showed you that prices in your country had increased 10% last year then you would be very unhappy if your wages had only increased by 4% 🙂
Dear sir
I understand
The word priceBut when we tell price index
I seriously have a problem in knowing what the extra word “index “ means
In general English the word index on its own can mean several things.
However a price index is simply the name we give to the number that we calculate as in my lectures – effectively is is how much something that cost $100 in the base period would cost today, and gives an easier way of looking at the effect of price increases.
So with the help of price index
The stakeholders could know the effect of price increase or decrease?
And why not it cannot be a benefit sir ?
It can certainly be useful (which is not quite the same as being a benefit).
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