Inflation is an increase in:
A) the price of a particular product.
B) the average price level in an economy.
C) the rate at which the price of a good rises.
D) output beyond the full-employment level.

Question

Quizplus · Accepted Answer

Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time. It reflects the rise in the average price level across the economy, not just the price increase of a single item or the rate at which prices for a specific good rise, nor does it relate to output levels.

Inflation Is an Increase In