An increase in the price of gasoline relative to telephones will cause inflation.

Question

Quizplus · Accepted Answer

Inflation refers to the general increase in prices across a broad spectrum of goods and services, not the relative price change between two specific items. An increase in the price of gasoline relative to telephones would not cause inflation but rather reflect a change in relative prices possibly due to factors like supply and demand changes for those specific goods.

An Increase in the Price of Gasoline Relative to Telephones