Asked by Bridger Johnson on May 12, 2024
Verified
If the price of a good increases compared to the base year,then the price level also increases.
Price Level
The general level of prices for goods and services in the economy at a given time.
Base Year
A reference year against which financial or economic data is compared, often used in index numbers and economic models.
- Determine and explicate the inflation rate by employing the consumer price index (CPI).
Verified Answer
CG
Crizelle Ganayo Luy-odMay 16, 2024
Final Answer :
True
Explanation :
Price level is a measure of the average prices of goods and services in an economy, and if the price of a good increases, it contributes to an overall increase in the price level.
Learning Objectives
- Determine and explicate the inflation rate by employing the consumer price index (CPI).