An index of the real level of production or consumption, in the whole economy or some part of it. A volume index is a weighted average of the production or consumption of some suitably chosen bundle of goods. The weights are the prices in some period. Where 0 is the base period and t the current period, pit the price and qit the quantity of good i produced or consumed in period t, a base-weighted, or Laspeyres, volume index is defined by
and a current-weighted, or Paasche, volume index is defined by