Inflation refers to an increase in the:
A) relative prices of some goods as compared to other goods.
B) average level of prices.
C) standard of living.
D) average level of nominal output.

Question

Quizplus · Accepted Answer

Inflation specifically refers to an increase in the average level of prices over time. It does not necessarily reflect a change in the relative prices of specific goods or the standard of living. The nominal output may also be affected by other factors, such as changes in productivity or output levels, and may not necessarily reflect inflation.

Inflation Refers to an Increase in The