Question

If the average price level increases by 2 percent this year, price stability has been achieved. True Or False (i need help right now!!!! im so confused!!!!

Answer 1

Answer:

True

Explanation:

Price stability is achieved when inflation, the general increase in the price level of goods and services over a period of time, reaches a relatively low level, usually from 1 - 3%.

For this reason, an inflation level (average price level increase) of around 2% would be considered as price stability by any contemporary central bank.