Inflation is primarily about the decreasing value of money, meaning that a unit of currency can buy fewer goods and services than before. This is due to an increase in the overall price level of goods and services in the economy.

Solved

Inflation Is

Question 80

Multiple Choice

Inflation is

A) more about the value of goods than about the value of money.
B) more about the value of money than about the value of goods.
C) best understood by looking at the individual prices that make up price indexes.
D) viewed by most economists today as a phenomenon that cannot be explained by the ideas of the "classical" economists.

Correct Answer: