A real price is:
A) an increase in the average level of the price of a good.
B) a decrease in the average level of the price of a good.
C) a price that has been corrected for inflation.
D) the average number of times a dollar is spent on final goods and services in a year.

Question

Quizplus · Accepted Answer

A real price is a price that has been corrected for inflation, meaning it reflects the value of the good or service in terms of purchasing power. Real prices are useful for comparing price changes over time and across different regions, while nominal prices (unadjusted for inflation) can be misleading because they do not account for changes in the general price level. Choices A, B, and D do not accurately define a real price.

A Real Price Is