Economics: Section 3: Module 15 Flashcards
Terms
1
Q
Aggregate Price Level
A
a measure of the overall level of prices in the economy
2
Q
Market Basket
A
a hypothetical set of consumer purchases of goods and services
3
Q
Price Index
A
measures the cost of purchasing a given market basket in a given year. The index value is normalized so that it is equal to 100 in the selected base year
4
Q
Consumer Price Index (CPI)
A
measures the cost of the market basket of a typical urban American family
5
Q
Producer Price Index (PPI)
A
measures changes in the prices of goods and services purchased by producers
6
Q
GDP Deflator
A
for a given year is 100 times the ratio of nominal GDP to real GDP in that year
