Notes on "Money Supply - Price Level / Inflation"
The sum of cash and deposits in savings and checking accounts at a given time; the capital stock within an economy at a given time.
The price an individual pays to borrow money or the opportunity cost that an individual absorbs to hold a quantity of money.
The cost of a good or service; nominal prices reflect the current or prevailing price for an item; real prices adjust for purchasing power variation over time (inflation).
The general level of increase in prices from one period to another.