Inflation occurs when
A) all prices in the economy rise.
B) the prices of some goods rise and prices of some goods fall,but more goods have price increases than decreases.
C) the prices of some goods rise and prices of some goods fall,but fewer goods have price increases than decreases.
D) the overall level of prices rises.
E) all prices in the economy fall.

Question

Quizplus · Accepted Answer

Inflation occurs when the overall level of prices in the economy rises, meaning that there is a general increase in the prices of goods and services over time. This can be caused by factors such as an increase in the money supply, a decrease in the supply of goods and services, or an increase in demand for goods and services.

Inflation Occurs When