Inflation is
A)a rise in the value of money
B)a decline in nominal income
C)a sustained increase in the price level
D)a general reduction in prices
E)an economic problem only for the retired population

Question

Quizplus · Accepted Answer

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It means that the same amount of money can buy fewer goods and services than before, which leads to a decrease in the purchasing power of money. Options A, B, and D are incorrect as they do not define inflation. Option E is also incorrect as inflation affects everyone in the economy, not just the retired population.

Inflation Is