When price levels increase at a faster rate than personal incomes, resulting in loss of buying power, the country is experiencing:
A) prosperity.
B) inflation.
C) recovery.
D) recession.
E) depression.

Question

Quizplus · Accepted Answer

Inflation occurs when the general price level of goods and services in an economy rises, resulting in a decrease in the purchasing power of money.

When Price Levels Increase at a Faster Rate Than Personal