A rise in prices that is fully offset by increases in quality is called:
A) deflation
B) inflation
C) stagflation
D) none of the above

Question

A rise in prices that is fully offset by increases in quality is called:
A)	deflation
B)	inflation
C)	stagflation
D)	none of the above

Quizplus · Accepted Answer

A rise in prices that is fully offset by increases in quality is not inflation, as inflation refers to a general increase in prices without necessarily involving an increase in quality. Deflation refers to a general decrease in prices. Stagflation refers to a situation where there is both inflation and stagnant economic growth. Since the given scenario does not fit any of these definitions, the correct answer is D, none of the above.

A Rise in Prices That Is Fully Offset by Increases