To install click the Add extension button. That's it.

The source code for the WIKI 2 extension is being checked by specialists of the Mozilla Foundation, Google, and Apple. You could also do it yourself at any point in time.

4,5
Kelly Slayton
Congratulations on this excellent venture… what a great idea!
Alexander Grigorievskiy
I use WIKI 2 every day and almost forgot how the original Wikipedia looks like.
Live Statistics
English Articles
Improved in 24 Hours
Languages
Recent
Show all languages
What we do. Every page goes through several hundred of perfecting techniques; in live mode. Quite the same Wikipedia. Just better.
.
Leo
Newton
Brights
Milds

# Price level

The general price level is a hypothetical daily measure of overall prices for some set of goods and services (the consumer basket), in an economy or monetary union during a given interval (generally one day), normalized relative to some base set. Typically, the general price level is approximated with a daily price index, normally the Daily CPI. The general price level can change more than once per day during hyperinflation.

• 1/5
Views:
7 879
20 218
246 406
21 590
301
• ✪ Inflation Guide Chapter 2: What is the price level and why does it matter?
• ✪ Use Multiple Price Levels in Tally ERP 9 in Hindi
• ✪ Tally.ERP 9 in Hindi ( Price List Creation & Use ) Part 84
• ✪ Multiple Price Level and Price List in Tally ERP 9 under GST-Part 78| Learn Tally Accounting
• ✪ Price Level and Inflation

## Theoretical foundation

The classical dichotomy is the assumption that there is a relatively clean distinction between overall increases or decreases in prices and underlying, “nominal” economic variables. Thus, if prices overall increase or decrease, it is assumed that this change can be decomposed as follows:

Given a set ${\displaystyle C}$ of goods and services, the total value of transactions in ${\displaystyle C}$ at time ${\displaystyle t}$ is

${\displaystyle \sum _{c\,\in \,C}(p_{c,t}\cdot q_{c,t})=\sum _{c\,\in \,C}[(P_{t}\cdot p'_{c,t})\cdot q_{c,t}]=P_{t}\cdot \sum _{c\,\in \,C}(p'_{c,t}\cdot q_{c,t})}$

where

${\displaystyle q_{c,t}\,}$ represents the quantity of ${\displaystyle c}$ at time ${\displaystyle t}$
${\displaystyle p_{c,t}\,}$ represents the prevailing price of ${\displaystyle c}$ at time ${\displaystyle t}$
${\displaystyle p'_{c,t}}$ represents the “real” price of ${\displaystyle c}$ at time ${\displaystyle t}$
${\displaystyle P_{t}}$ is the price level at time ${\displaystyle t}$

The general price level is distinguished from a price index in that the existence of the former depends upon the classical dichotomy, while the latter is simply a computation, and many such will be possible regardless of whether they are meaningful.

## Significance

If, indeed, a general price level component could be distinguished, then it would be possible to measure the difference in overall prices between two regions or intervals. For example, the inflation rate could be measured as

${\displaystyle {\frac {(P_{t_{1}}-P_{t_{0}})/P_{t_{0}}}{t_{1}-t_{0}}}}$

and “real” economic growth or contraction could be distinguished from mere price changes by deflating GDP or some other measure.

${\displaystyle {\frac {(GDP)_{t_{1}}}{P_{t_{1}}}}-{\frac {(GDP)_{t_{0}}}{P_{t_{0}}}}}$