Price level (Ofer Abarbanel online library)

The general price level is a hypothetical measure of overall prices for some set of goods and services (the consumer basket), in an economy or monetary union during a given interval (generally one day), normalized relative to some base set. Typically, the general price level is approximated with a daily price index, normally the Daily CPI. The general price level can change more than once per day during hyperinflation.

Measuring price level

Applicable indices are the consumer price index (CPI), Default Price Deflator, and the Producer Price Index.

Price indices not only affect the rate of inflation, but are also part of real output and productivity.[1]

References

  1. ^SAMUELSON, P. A., NORDHAUS, W. D.  19. vydání. Praha: NS Svoboda, 2013. 715 s. ISBN 978-80-205-0629-0.

 

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