Inflation is defined as an increase in:
A) real wages of workers.
B) real GDP.
C) the average price level.
D) all consumer products.

Question

Quizplus · Accepted Answer

Inflation is an increase in the average price level over time, which means that the purchasing power of money decreases. It does not necessarily lead to an increase in real wages or real GDP. Therefore, option C is the correct choice. Options A and B are incorrect, as they do not accurately define inflation. Option D is incorrect, as not all consumer products will necessarily increase in price during inflation.

Inflation Is Defined as an Increase In