The change in the cost of living over time is referred to as:
A) inflation.
B) substitution bias.
C) a fixed-weight price index.
D) real income.

Question

Quizplus · Accepted Answer

Inflation is the increase in the general price level of goods and services in an economy over time. As the cost of living goes up due to increased prices, inflation measures how much the purchasing power of a unit of currency has decreased.

The Change in the Cost of Living Over Time Is