Whats the difference between Increase in General Price Level and Inflation
Decrease in General Price Level and Deflation
Dear Student,
The term price level refers to the prices that must be paid in order to acquire a basket of goods and services.
and inflation refers to the continual rise of the price level.The inflation rate is calculated by comparing price level in one time period to price level of a previous period.
Increase in price level means a person has to pay more for a basket of goods and services. And inflation is increase in prices of the overall economy as compared to previous year .
Decrease in price level means a person has to pay less for a basket of goods and services .And deflation is the decrease in the prices of overall economy as compared to previous time period.
Hope this information will clear your doubts.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards
The term price level refers to the prices that must be paid in order to acquire a basket of goods and services.
and inflation refers to the continual rise of the price level.The inflation rate is calculated by comparing price level in one time period to price level of a previous period.
Increase in price level means a person has to pay more for a basket of goods and services. And inflation is increase in prices of the overall economy as compared to previous year .
Decrease in price level means a person has to pay less for a basket of goods and services .And deflation is the decrease in the prices of overall economy as compared to previous time period.
Hope this information will clear your doubts.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards