Inflation means:
A)an increase in individuals' real income.
B)that all prices are rising and at the same rate.
C)an increase in the overall price level.
D)a decrease in the overall level of prices.

Question

Quizplus · Accepted Answer

Inflation refers to an increase in the overall price level of goods and services over a period of time. This means that the cost of living increases, as the same amount of money can purchase fewer goods and services. Inflation can be caused by a variety of factors, including an increase in the money supply, higher production costs, or increased demand for goods and services. Options A, B, and D are incorrect as they do not accurately describe inflation.

Inflation Means