Inﬂation means that the prices of all items in the economy are increasing.

Question

Quizplus · Accepted Answer

Inflation does not mean that the prices of all items in the economy are increasing. It refers to a sustained and general increase in prices for goods and services over a period of time. Some prices may increase more than others, while others may even decrease. It is measured by the Consumer Price Index (CPI), which tracks the prices of a basket of goods and services over time.

Inﬂation Means That the Prices of All Items in the Economy