Inflation ________.

Question

Inflation ________.

Quizplus · Accepted Answer

Inflation is typically explained by changes in the price level and the money supply. When there is an increase in the money supply, there is more money available to purchase goods and services. This can lead to an increase in demand for goods and services, which can result in an increase in prices. Alternatively, inflation can occur when the supply of goods and services is restricted (e.g. due to natural disasters or supply chain disruptions), which can lead to higher prices. Ultimately, inflation is seen as a monetary phenomenon.