Question 41 1 point Use the graph with P RGDP Graph with P

Question 41 (1 point) Use the graph with P & RGDP Graph with P and RGDP. in this context P represents 1) the price of a single good. 2) price level in the economy measured by a price index like the GDP deflator. 3) the amount of money in the economy. 4) the purchasing power of a dollar in the economy. Save

Solution

The P represents the general price level in the economy. It could be measured by GDP deflator or other measures like CPI etc.

The answer is \"B\", the price level in the economy measured by the price index like the GDP deflator.