If the cost of a typical market basket is 400 in 2018, 450 in 2019, and 550 in 2020, then during this period the economy is undergoing
A) inflation.
B) disinflation.
C) deflation.
D) hyperinflation.

Question

Quizplus · Accepted Answer

Inflation is the process where there is a general increase in the price level of goods and services in an economy over a period of time. This is reflected in the increasing cost of the market basket over the period specified.

If the Cost of a Typical Market Basket Is 400