Inflation is defined as

Question

Quizplus · Accepted Answer

Inflation is defined as an increase in the overall level of prices. This means that the prices of goods and services across the economy are rising, resulting in a decrease in the purchasing power of money. Options A and B are incorrect as an increase in the quantity of goods in the consumer's basket or an increase in the level of GDP do not necessarily imply inflation. Option C is also incorrect as an increase in the price of one important good like gasoline does not necessarily imply inflation in the overall economy.

Inflation Is Defined as