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 UK's 100 largest listed companies; when it fell sharply in March 2020 during COVID-19, it signalled a severe economic shock.
Exam Focus
Always state what base year value of 100 represents — examiners expect you to interpret index changes, not just describe them.
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