What is the economic condition characterized by widespread increased prices without increased purchasing power?
A) Unemployment
B) Inflation
C) Expansion
D) Deflation
E) Recession

Question

Quizplus · Accepted Answer

Inflation is characterized by a general increase in prices of goods and services in an economy, while the purchasing power of the currency reduces. This means that people can buy fewer goods and services with the same amount of money, leading to a decrease in the standard of living. Unemployment, expansion, deflation, and recession do not relate to widespread increased prices without increased purchasing power.

What Is the Economic Condition Characterized by Widespread Increased Prices