Inflation is
A) an increase in the purchasing power of money
B) a decrease in the quality of goods and services
C) an increase in the prices of goods and services not offset by increases in the quality of those goods and services
D) a measure of the money supply

Question

Quizplus · Accepted Answer

Inflation is an economic condition where there is an overall increase in the prices of goods and services over a period of time, not necessarily because of any increase in the quality of goods and services. This means that the purchasing power of money decreases as it can buy fewer goods and services than before. Therefore, option C is the correct choice.

Inflation Is