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The price level is all prices being the same. the avereage taken by adding up all...

The price level is

all prices being the same.
the avereage taken by adding up all prices and dividing by the number of goods.
a price index relative to a base year with an index of 1.
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Answer #1

The correct answer is - A price index relative to a base year with an index of 1

Explanation - The price level in the economy is the overall price level that is measured by the price index. The price index has a weight basket of good and services. It is therefore not just the average by taking up all prices and dividing by the number of goods. Just as an example, the consumer price index measures the price level based on the typical consumption patters of goods and services. It is the typical consumption pattern that determines the weight of the good or service in the index.

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