An increase in the overall level of prices in an economy is called
A) growth.
B) expansion.
C) inﬂation.
D) nominal GDP growth.

Question

Quizplus · Accepted Answer

Inflation refers to an increase in the overall level of prices in an economy. Growth and expansion generally refer to increases in real economic activity and output, while nominal GDP growth refers to the increase in GDP measured in current prices, which could be influenced by both inflation and real growth.

An Increase in the Overall Level of Prices in an Economy