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← Class 9 Economics

Class 9 · Bangla Version · Economics

National income, prices and employment

Separate price levels, inflation rates and purchasing power.

Original Kidemy further-topic investigation. This optional lesson is shared by related upper pathways; select suitable depth with a teacher. It does not certify complete grade or board coverage.

Learn the idea

An index compares a selected basket with a reference period. Inflation is the percentage change of the index over a specified interval. Real purchasing power compares a money amount with prices. A smaller positive inflation rate still means a rising price level.

Worked example

An index100→110→115.5 rises10% then5%. A money income1000→1050 rises5%; against a 10% price rise, real purchasing power falls because1050/1.10≈954.55 in initial-price units.

  1. Name the period and basket.
  2. Use the original base.
  3. Explain purchasing power and one coverage limit.

Your written practice

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5

6/120×100.

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1200

1320/1.1.

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2

2/100×100.

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The rate of increase may slow while remaining positive.

Distinguish level and change.

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The household may buy a different mix of goods and face different prices.

Explain weighting and coverage.

Apply the idea

Write a four-sentence commentary on a fictional price and income table.

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