Price Level

A price level is a hypothetical measure of overall prices for some set of goods and services, in a given region during a given interval, normalized relative to some base set. Typically, a price level is approximated with a price index.

Read more about Price LevelTheoretical Foundation, Significance

Other articles related to "level, price level, price, prices, price levels":

Lucas Island Model - Applications of The Model
... Every period will have its unique equilibrium level ... is constant and evenly distributed among the old, the price level is assumed to be constant i.e ... when everyone is perfectly informed, the price level and the money supply will be proportional ...
Commercial Planning - Method Explanation - Tactical Planning - Pricing: Define Price Level
... Description the price of the product has to be defined ... A product price is based on development, production, storage, transport and promotion costs ... The price level must be carefully balanced as shown in figure 2 ...
Price Level - Significance
... If, indeed, a price-level component could be distinguished, then it would be possible to measure the difference in overall prices between two regions or intervals ... or contraction could be distinguished from mere price changes by deflating GDP or some other measure ...
... the money supply or by reducing taxes, seeking to bring the economy (specifically price level) back up to the long-term trend, following a dip in the business cycle ... be considered a form of inflation (increase in the price level), is contrasted with inflation (narrowly speaking) in that "bad" inflation is inflation above the long-term trend line, while reflation is ... where there is long-term growth in the economy and price level, which is widely accepted in economics ...
AD-AS Model - Aggregate Supply Curve
... output is supplied by firms at various potential price levels ... The aggregate supply curve (AS curve) describes for each given price level, the quantity of output the firms plan to supply ... supply whatever amount of goods is demanded at a particular price level during an economic depression ...

Famous quotes containing the words level and/or price:

    Those who profess contempt for men, and put them on a level with beasts, yet wish to be admired and believed by men, and contradict themselves by their own feelings—their nature, which is stronger than all, convincing them of the greatness of man more forcibly than reason convinces them of his baseness.
    Blaise Pascal (1623–1662)

    I have asked a lot of my emotions—one hundred and twenty stories. The price was high, right up with Kipling, because there was one little drop of something, not blood, not a tear, not my seed, but me more intimately than these, in every story, it was the extra I had. Now it has gone and I am just like you now.
    F. Scott Fitzgerald (1896–1940)