Asked by Kanisha Branner on Jun 06, 2024
Verified
Which of the following describes an economy's price level?
A) The cost of producing goods and services using domestically owned factors of production
B) The year-to-year change in nominal GDP
C) The year-to-year change in the price of consumer goods
D) The total price of aggregate output
E) The average price of aggregate output
Price Level
A measure of the average price of goods and services in an economy, which can indicate the inflation rate or cost of living.
Aggregate Output
The total value of goods and services produced in an economy over a specific period, measuring the economy's overall production.
- Appreciate the value and procedure involved in determining price indices, as well as their importance in monitoring economic variations.
Verified Answer
HH
Hannah HolderJun 12, 2024
Final Answer :
E
Explanation :
The price level is the average price of all goods and services produced in an economy. Therefore, the best choice is E, which describes the average price of aggregate output.
Learning Objectives
- Appreciate the value and procedure involved in determining price indices, as well as their importance in monitoring economic variations.