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.

---

Definitions:

Break-Even

The juncture where the overall expenditures match the total income, resulting in neither a profit nor a loss.

Economic Profits

Profits exceeding the opportunity costs of all resources used, including both explicit and implicit costs.

Accounting Profits

The difference between total revenues and explicit costs, representing the net income a company reports on its financial statements.

Most Efficient Output

The level of production at which a firm operates with the lowest average total cost, achieving optimal efficiency.