a(n)__________ economy,if prices rise faster than consumer incomes,the number of items consumers can buy decreases.
A) deflationary
B) stagflationary
C) recessionary
D) inflationary
E) depressive

Question

Quizplus · Accepted Answer

In an inflationary economy, the overall price level of goods and services increases, leading to a decrease in the purchasing power of consumers. If this rise in prices is faster than the increase in consumer incomes, then the number of items consumers can buy decreases, which is known as inflationary pressure.

A(n)__________ Economy,if Prices Rise Faster Than Consumer Incomes,the Number of Items