Inflation occurs when the

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Quizplus · Accepted Answer

Inflation occurs when there is a general increase in the price level of goods and services in an economy, meaning that prices are rising and the value of money is decreasing. This can be caused by a number of factors, including increases in the money supply or decreases in the supply of goods and services. A rising value of real GDP (C) or a decreasing value of real GDP (D) are not necessarily indicators of inflation, as there can be other factors at play in the economy.

Inflation Occurs When the