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Economists combine the prices of a variety of goods and services into a single:
AWage rate
BGrowth rate
CPrice level
DTax rate
Answer & Solution
Correct answer: C. Price level
1. Many prices must be summarised by one number.
2. Measuring inflation requires a single summary figure.
3. Economists combine prices of a variety of goods and services into a single price level.
4. Changes in that level are what inflation measures.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 8 'Inflation'_
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