A rise in prices not offset by increases in quality is called:
A) deflation
B) inflation
C) stagflation
D) none of the above

Question

A rise in prices not offset by increases in quality is called:
A)	deflation
B)	inflation
C)	stagflation
D)	none of the above

Quizplus · Accepted Answer

Inflation is the rise in prices of goods and services, and if it is not offset by increases in quality, it can lead to a decrease in the purchasing power of money. Deflation is the opposite, where there is a decrease in prices, and stagflation is a combination of high inflation and slow economic growth. None of the above options corresponds to the given scenario of a rise in prices without an increase in quality.

A Rise in Prices Not Offset by Increases in Quality