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A)

BASE YEAR
2004 2005 2006 2007
INDEX NO 100 101,7 113,1 116,9

For 2005:
240
x100=101,7
236
For 2006:
267
x100=113,1
236
For 2007:
276
x100= 116,9
236

B)

BASE YEAR
2004 2005 2006 2007
2004 SPENDING 256 229,2 244,7 244,7

4,7
For 2005, the scale factor: 1 + = 1,047
100
240
= 229,2
1,047
4,2
For 2006, the scale factor: 1 + = 1,042
100
267
= 244,7
1,047 x 1,042
3,4
For 2007, the scale factor: 1 + = 1,034
100
276
= 244,7
1,047 x 1,042 x 1,034

For 2005:
229,2
x 100 = 97,1
236
For 2006 & 2007:
244,7
x100 = 103,7
236

C) From 2004-2005:
229,2−236
x100= -2,9%
236
Spending fell by 2,9% in 2005:
From 2005-2006:
244,7−229,2
x100= 6,8%
229,2
Spending rose by 6,8% in 2006:
From 2005-2006:
Spending remained uncharged.

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