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Technological Efficiency Occurs When It Is Not Possible for a Firm

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Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using.


Definitions:

Inflation Level

Inflation level measures the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Base Year

A specific year chosen as a point of reference or benchmark for financial or economic data comparison over time.

Laspeyres Index

A measure of price inflation that calculates the relative price change of a fixed basket of goods and services at current prices compared to the prices of the same basket in a base period.

Price Levels

The overall average price of all goods and services made in the economy.

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