Last year,a mother in a small African nation could buy a pound of flour for the Canadian equivalent of $1.30.Six months ago,an identical pound of flour cost $3.40.Today she would need $5.60 to buy that pound of flour.This example of the general upward movement of prices is called which of the following?

Question

Quizplus · Accepted Answer

Inflation refers to the general increase in prices of goods and services over time, leading to a decrease in the purchasing power of money. The example given in the question clearly shows a consistent increase in the price of flour over time, indicating inflation. The other options, such as discretionary pricing and supply-side pricing, refer to specific pricing strategies used by businesses, while deflation refers to a decrease in overall prices, which is not the case in this scenario.

Last Year,a Mother in a Small African Nation Could Buy