Inflation occurs when
A) the purchasing power of money is increasing
B) some prices are increasing but other prices are decreasing
C) the average level of prices is increasing
D) the purchasing power of money remains unchanged

Question

Quizplus · Accepted Answer

Inflation is defined as a general increase in the average level of prices of goods and services in an economy over a period of time, which corresponds to a decrease in the purchasing power of money.

Inflation Occurs When