Inflation is:

Question

Inflation is:

Quizplus · Accepted Answer

Inflation refers to a sustained increase in the average prices of all goods and services over a period of time. This means that the general level of prices is rising, which reduces the purchasing power of money. Options A and D are incorrect because sustained decreases in total prices or sustained increases in total prices would refer to deflation and hyperinflation, respectively. Option B is incorrect because sustained decreases in the average prices of all goods and services would also refer to deflation.

Inflation Is