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The price level refers to the average level of prices for goods and services in an entire economy. It represents the purchasing power or value of money.
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Consumer Price Index (CPI): A measure that tracks changes in prices paid by consumers for a representative basket of goods and services over time.
Deflation: A decrease in the general price level, resulting in an increase in purchasing power.
Cost-push inflation: An increase in prices caused by increases in production costs, such as wages or raw material costs.