Simple Aggregate Price Index

The method in which sum of prices of all the commodities in the current period is divided by the total prices in the base period is called unweighted aggregate index. Since simple aggregate index does not give relative importance to the commodities therefore it is neither meaningful nor representative index. The formula for calculating a simple aggregate price index is given below.

 

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Problem: Calculate price index using simple aggregate method taking

  • 1975 as base year
  • Chain base method

 

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Solution:

 

1975 as base year

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Chain Base Method

 

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Summary of the Results

 

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15 responses to Simple Aggregate Price Index

Currently we are working on other categories to complete our threshold of 5o articles each category. As soon as we complete our threshold of 50 we will come up with through explanation of each article.

Well simplified and easy to grasp…thank you very much but there is need to include different types of examples.

thank u so much u have no idea how much have u helped metomorrow is my exam and u saved my life thnxx
xoxo

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