Under these assumptions, the primary driver of the change in the general price level is changes in the quantity of money.
12.
-Inflation : The deflation in commodities and competition in the global marketplace will serve to keep the general price level down.
13.
The consensus call is for a rise of 0 . 3 percent in the general price level as measured by the index.
14.
Given this assumption, a producer might perceive an increase in general price level as an increase in the demand for his goods.
15.
Conversely, a constant volume of money tends ultimately to stabilize not only the general price level, but the relations within the price structure.
16.
Price stability obtains when economic agents no longer take account of the prospective change in the general price level in their economic decision-making,
17.
Greenspan said, complicating that task " is the increasing difficulty of pinning down the notion of what constitutes a stable general price level ."
18.
The general price level declined for more than two decades, which meant borrowers were paying off their loans in more expensive dollars than those they borrowed.
19.
As the Industrial Revolution unfolded, the United States General Price Level, that day's version of the Consumer Price Index, fell 1.3 percent a year, on average.
20.
The general price level still rises, but at a slower rate resulting in a lower rate of real value destruction in money and other monetary items.
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