Inflation
A) is the rate at which the general level of prices is increasing.
B) rates are high when the economy is considered to be "overheated."
C) is unrelated to unemployment rates.
D) is the rate at which the general level of prices is increasing, and rates are high when the economy is considered to be "overheated."
E) is the rate at which the general level of prices is increasing and is unrelated to unemployment rates.

Question

Quizplus · Accepted Answer

Inflation is defined as the rate at which the general level of prices for goods and services is rising. High inflation rates often occur when the economy is "overheated," meaning demand outpaces supply.