In order to calculate the price index number for the year 1934, we need to collect the relevant data. This data should include the prices of a basket of goods and services for the years 1933 and 1934.


The next step is to determine the base year. The base year is the year against which the prices of all other years are compared. In this case, let us assume that the base year is 1933.


The price of the basket of goods and services for the base year (1933) is calculated by adding up the prices of all the items in the basket for that year. Let us assume that the total price of the basket in 1933 is $100.


The price of the basket of goods and services for the current year (1934) is calculated in the same way as the base year. This involves adding up the prices of all the items in the basket for that year. Let us assume that the total price of the basket in 1934 is $120.


The price index number for the current year (1934) is calculated by dividing the price of the basket for the current year by the price of the basket for the base year and multiplying by 100.

Price index number = (Price of the basket for the current year/Price of the basket for the base year) x 100

In this case, the price index number for the year 1934 is:

Price index number = ($120/$100) x 100 = 120

Therefore, the price index number for the year 1934 is 120. This indicates that prices have increased by 20% compared to the base year (1933).