If the average price level increases by 2 percent this year,price stability has been achieved.
Price stability as defined by the Full Employment and Balanced Growth Act of 1978 is an inflation of 3 percent or less per year.

Question

Quizplus · Accepted Answer

According to the Full Employment and Balanced Growth Act of 1978, price stability is defined as an inflation rate of 3 percent or less per year, so a 2 percent increase in the average price level would meet this criterion.

If the Average Price Level Increases by 2 Percent This