Index (Economic)
Measure tracking economic variable over time.
Formula
Index Value = (Current Value ÷ Base Year Value) × 100
Real World
The FTSE 100 tracks the performance of the 100 largest companies on the London Stock Exchange — when it fell sharply in March 2020 during COVID-19, investors used it to gauge the scale of economic damage.
Exam Focus
When asked to 'interpret' an index, state the base value is 100 and explain whether the variable has risen or fallen in percentage terms.
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