In general, inflation is defined as
A)the increase in Gross Domestic Product over time.
B)a measure of the average person's preference for a present good compared to a future good.
C)an increase in prices of goods and services that are included in a consumption basket over time.
D)an increase in the purchasing power of money over time.
E)the difference between the real and nominal Gross Domestic Product (GDP).

Question

Quizplus · Accepted Answer

Inflation is most accurately defined as an increase in the prices of goods and services that are included in a consumption basket over time. This reflects the general rise in price levels across the economy, reducing the purchasing power of money.

In General, Inflation Is Defined as