what is base year and its characteristics.
Base year refers to the year against which the values of a variable in the current year are compared. In this way, it forms the basis of relative comparison.
1. The base year is a benchmark with reference to which the national account figures such as GDP is calculated.
2. Base year should not be far from the period of study.
3. It is the year of reference from which we want to measure extent of change in the current year.