Today
Price Level
Today price level means
there is no inflation accounted for or allowed (prices without inflation). Today
price level is also known as real price level.
Today
price level Example
Revenue at today price
level in 5 years would be 400,000. What would be inflated price level, if
inflation is 9%.
Solution
Today price level = 400,000
Inflated price level = 400,000 (1+.09)5
615,450
(Inflated price level)
