The average percentage markup in the economy is
A) relatively stable,but the price level may not be
B) relatively stable,causing the price level to also be relatively stable
C) relatively unstable,despite which the price level remains relatively stable
D) relatively unstable,causing the price level to also be relatively unstable
E) determined by the unit costs of production.

Question

Quizplus · Accepted Answer

The average percentage markup in the economy is relatively stable, but the price level may not be. This is because the markup can be influenced by various factors such as competition, input costs, and demand. However, the price level can also be influenced by factors such as inflation, supply and demand, and government policies. Therefore, the stability of the markup does not necessarily lead to stability in the price level.

The Average Percentage Markup in the Economy Is