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hi everybody in next numbers are used a lot in economics whether its for GDP data house prices productivity exchange rate inflation we like to use index numbers a lot why and how can we actually get in next numbers this video is gonna look at that well lets look at two reasons why we like index numbers in economics in economics there are a heck of a lot of ugly numbers look at GDP GDP could be twelve numbers long you know and decimal places even longer than that that is a horribly ugly number so yeah to make ugly numbers less ugly you can simplify it like that there are so many ugly numbers just like this number here two four nine three five zero point nine what a horrible number that is if thats house price average house prices in a year thats a horrible number to look at if instead of saying that we could just say well that number is a hundred then my god life is much easier much nicer to look at a hundred than this horrible number and the second reason why is because in economi
