Heterodox The general price level is a hypothetical 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.
The general price level can change more than once per day during hyperinflation.
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
Price indices not only affect the rate of inflation, but are also part of real output and productivity.