An increase in the overall level of prices in an economy is called:
A) Growth
B) Expansion
C) Inflation
D) Nominal GDP growth

Question

Quizplus · Accepted Answer

Inflation is defined as a sustained increase in the general price level in an economy over a period of time. Option A (growth) and B (expansion) are too broad and can apply to various aspects of the economy, while option D (nominal GDP growth) only refers to the increase in the value of goods and services produced, without accounting for the effects of inflation.

An Increase in the Overall Level of Prices in an Economy