The Average Price Level Is Measured by

question 34

Multiple Choice

The average price level is measured by

• A)the price of oil.
• B)the rate of inflation.
• C)the nominal interest rate.
• D)the GDP deflator or the CPI.

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Definitions:

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without direct intervention by policymakers.

Expansionary Fiscal Policy

Government policy aimed at increasing economic activity through higher spending or lower taxes.

Deficit Reduction Packages

Sets of policy measures aimed at reducing government budget deficits through spending cuts, tax increases, or a combination of both.

Budget Act

Legislation outlining how the government will manage its finances, including spending and revenue collection.