Inflation refers to an overall rise in prices in the economy. This means that the general level of prices for goods and services is increasing. It often leads to a decrease in the purchasing power of money as consumers need to spend more to buy the same amount of goods and services.

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Inflation Is

Question 16

Multiple Choice

Inflation is:

A) an overall rise in prices in the economy.
B) an overall decline in prices in the economy.
C) an overall rise in prices in the economy,excluding those with historically volatile price changes.
D) an overall decline in prices in the economy,excluding those with historically volatile price changes.

Correct Answer: