What do economists mean when they refer to the economy's price level?
A) the rate of inflation
B) the price of goods and services relative to consumers' incomes
C) a general measure of prices of all goods and services
D) a period of level, or steady, prices

Question

What do economists mean when they refer to the economy's price level?  
A) the rate of inflation 
B) the price of goods and services relative to consumers' incomes 
C) a general measure of prices of all goods and services 
D) a period of level, or steady, prices

Quizplus · Accepted Answer

The economy's price level refers to a general measure of prices of all goods and services in an economy. It is usually measured through an index, such as the consumer price index (CPI), which tracks the changes in the cost of a basket of goods and services over time.

What Do Economists Mean When They Refer to the Economy's