Price stability refers to:
A) A constant average price level.
B) The absence of significant changes in the average price level.
C) An inflation rate of zero.
D) Increases in prices equal to or less than the growth rate of the economy.

Question

Quizplus · Accepted Answer

Price stability refers to the absence of significant changes in the average price level, which means that there is no significant inflation or deflation. It does not necessarily mean a constant or unchanging average price level, and it does not necessarily require that increases in prices be limited to the growth rate of the economy.

Price Stability Refers To