Peregrine Exam Day 7 Questions and Verified Answers| 100% Correct| Grade A+

price level - a measure of the average prices of goods and services in the economy Price levels are expressed in... - small ranges or as discrete values such as dollar figures Price levels are leading indicators in the economy; - rising prices, indicate higher demand leading to inflation while declining prices indicate lower demand or deflation In the investment world.... - price level is referred to as support and resistance, which help define entry and exit points monetary policy - Government policy that attempts to manage the economy by controlling the money supply and thus interest rates. Aggregate Demand - the amount of goods and services in the economy that will be purchased at all possible price levels How is CPI used? - 1. as a target policy: to gauge our success in low inflation -to measure inflationary tendencies 2. to index payments 3. to translate from nominal to real values Consumer transaction - A transaction in which an individual incurs an obligation primarily for personal, family, or household purposes. economic growth - the ability of the economy to increase the production of goods and services Increases in capital goods, labor force, technology, and human capital - can all contribute to economic growth