# price level Summary::A confused concept which implies that all prices rise and fall uniformly. A confused concept which implies that all [prices](https://www.freemarketcenter.com/lexicon/index.html#price) rise and fall uniformly with changes in the quantity of money or the total of goods and services offered for sale, somewhat as the level of a liquid rises and falls with changes in its quantity or the size of its container. Actually, the term "[price level](https://www.freemarketcenter.com/lexicon/index.html#price%20level)" usually refers to an average of selected [prices](https://www.freemarketcenter.com/lexicon/index.html#price) which individually move quite differently from each other and their average. Acting men are more interested in the interrelationship of different [prices](https://www.freemarketcenter.com/lexicon/index.html#price) than in the movement of all or average [prices](https://www.freemarketcenter.com/lexicon/index.html#price). When all, or almost all, [prices](https://www.freemarketcenter.com/lexicon/index.html#price) move in the same direction, it is usually a sign of inflation (q.v.) or deflation (q.v.). Continued use of the term "_**price level**_" frequently leads to the notion of the neutrality of money (q.v.). [[Human Action - Mises (HA)]] 219-23,398-401,408-22; [[Theory of Money and Credit (M.)]] 137-45, 188-94. # level of prices See "[price level](https://www.freemarketcenter.com/lexicon/index.html#price%20level)." ---- # References / Links