a) Calculation of terms of trade

    Cards (3)

    • How is the index measured in this context?
      It is calculated from weighted average prices
    • What does the index represent in the context of price changes?

      It represents export and import price changes
    • How do you calculate the index using export and import prices?
      (average export price index/average import price index)×100(\text{average export price index}/\text{average import price index}) \times 100