What is the definition of inflation?
A) a reduction in everyone's standard of living
B) a rise in the real prices of all goods and services
C) a general and continuing rise in the money prices of goods and services
D) a continuing rise in everyone's standard of living

Question

What is the definition of inflation?  
A) a reduction in everyone's standard of living 
B) a rise in the real prices of all goods and services 
C) a general and continuing rise in the money prices of goods and services 
D) a continuing rise in everyone's standard of living

Quizplus · Accepted Answer

Inflation is defined as a general and continuing rise in the money prices of goods and services. It means that the purchasing power of money decreases over time, leading to an increase in overall prices. Inflation can occur due to various factors such as an increase in demand, a decrease in supply, or an increase in the money supply. It can have negative effects on the economy, including reducing the value of savings and fixed-income assets, causing uncertainty for businesses and consumers, and reducing economic growth.

What Is the Definition of Inflation