The average price of goods and services in the economy is also known as
A)the price level.
B)the inflation rate.
C)a market basket.
D)the cost of living.

Question

Quizplus · Accepted Answer

The average price of all the goods and services produced in the economy is known as the price level. It is a common measure of inflation or deflation in an economy. Choice B, the inflation rate, specifically measures the rate at which the price level is increasing. Choice C, a market basket, refers to a collection of goods and services used to track changes in the price level. Choice D, the cost of living, is a broader measure that includes the price of goods and services but also takes into account the income and expenses of individuals and households.

The Average Price of Goods and Services in the Economy