When economists refer to the economy's price level,they mean
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
E)the prices of a specific consumer good

Question

Quizplus · Accepted Answer

The economy's price level refers to a general measure of prices of all goods and services in the economy. It is often measured using indexes such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). It represents the overall level of prices in the economy, and changes in the price level can affect various economic factors such as inflation, interest rates, and consumer purchasing power. Thus, option C is the best choice for this question.

When Economists Refer to the Economy's Price Level,they Mean