What does the purchasing power of a money mean? How can it be measured?
What will be an ideal response?
The purchasing power of a money is also known as its real value and indicates the amount of goods and services that can be purchased with a given amount of the money. We measure purchasing power by first calculating the price level, which is a weighted average of the prices of the goods and services that people consume. The weights in the price level reflect the shares of these goods and services in the consumption bundle of a typical individual. The purchasing power of the money is then found by taking the reciprocal of the price level. The units of the price level are an amount of money per consumption bundle, and the units of purchasing power are consumption bundles per unit of money.
You might also like to view...
Arthur has attached a device to a local ATM machine that records customers' bank account numbers and PINs. He then sells these account numbers and PINs to nefarious individuals who use the information to steal money from the customers' accounts. Arthur is
A. not guilty of a crime because he was not the one stealing the money. B. guilty of a crime under the Computer Fraud and Abuse Act as amended by the Patriot Act. C. guilty of the crime of embezzlement. D. guilty of a crime under the Mail Fraud Act.
A firm is said to engage in shill marketing if it pays people to anonymously promote a product or service to consumers in public places without disclosing their financial relationship to the sponsoring firm
Indicate whether the statement is true or false
In 2018, the number of online buyers in the United States was over 190 million.
Answer the following statement true (T) or false (F)
The ________ made deceptive and misleading advertising illegal.
What will be an ideal response?