To an economist, the term "inflation" refers to:
A) any price increases.
B) a continually rising price level.
C) a one-time change in the average price level.
D) increases in prices of important goods like food and energy.

Question

Quizplus · Accepted Answer

Inflation refers to a sustained increase in the general price level of goods and services in an economy over a period of time. It is not a one-time change in the average price level, nor is it solely based on increases in the prices of important goods like food and energy. Any price increase does not necessarily qualify as inflation unless it is part of a persistent trend of rising prices over time.

To an Economist, the Term "Inflation" Refers To