Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. in year one, the basket costs $10.00. in year two, the price of the same basket is $9.00. from year one to year two, there is at an annual rate of . in year one, $50.00 will buy baskets, and in year two, $50.00 will buy baskets. this example illustrates that, as the price level falls, the value of money .

price level fall and value of money is rises

Explanation:

given data

one year basket costs =  $10.00

two year two basket costs =  $9.00

one year buy baskets = $50

year two,buy baskets = $50

to find out

as the price level falls, the value of money  will be

solution

we see that when we compare to 1 year price go down from $10 to $ 9

so deflation at annual rate is = 10%

so here

sum of $50 will be buy here = = $5 in one year

and $ 50 buy in 2 year is = = $5.56 in two year

so this is show here that price level fall and value of money is rises

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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