Index (economics)

High school (ages 12+)
Mathematics & Numbers

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/index--economics-

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is an economic index?An economic index is a number that shows whether things like prices, jobs, or markets are getting higher or lower over time. It helps people understand big economic changes in a simple way.
2. Why do people use the Consumer Price Index (CPI)?The CPI shows how much everyday items cost more or less, which helps decide wages, taxes, and social benefits. It tells us if inflation is happening.

Purchasing Power Parity (PPP): A theory that compares currencies through a 'basket of goods' to determine exchange rates.
GDP Deflator: A measure of the price level of all new, domestically produced, final goods and services in an economy.