Inflation means that the prices of all items in the economy are increasing.Difficulty: 02 Medium
Learning Objective: 29-03 Explain how inflation is measured and distinguish between cost-push inflation and demand-pull inflation.Topic: Inflation

Question

Quizplus · Accepted Answer

Inflation refers to the general increase in prices across the economy, but not all items necessarily increase in price. Some may remain stable or even decrease.

Inflation Means That the Prices of All Items in the Economy