Calculate
Money Price Level
Money price level can be calculated
from today price level (real price level).
Money price level Example
Sales recorded for year
2001 at today price level in 3 years would be 600,000. What would be money
price level, if inflation is 12%.
Solution
Today price level = 600,000
Inflated price level = 600,000 (1+.12)3
842,957
(money price level)
