ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is Price Level? Price level is the average of current prices across the entire spectrum of goods and services produced in an economy. In more general terms, price level refers to the price or cost of a good, service, or security in the economy.

Detailed explanation-2: -The term price level is defined as a measurement of the current prices of goods and services produced in the economy of a specific region or country at a specific time. In other words, it can be considered a measure of the average prices of goods and services in the economy.

Detailed explanation-3: -How You Find Average Price? Average price is calculated by taking the sum of the values and dividing it by the number of prices being examined.

Detailed explanation-4: -We can think of this price level for a basket of goods as a general price index that is comprised of various goods and services in the country. For example, the consumer price index (CPI) in the United States is a representative price level for a basket of goods.

Detailed explanation-5: -Average level of prices of all goods and services provided in the economy in the economy is called cost price.