Inflation necessarily occurs when
A) the price of gasoline rises.
B) a greater number of goods increase in price compared to the number of goods that undergo a price decrease.
C) the overall price level,such as the consumer price index (CPI),rises.
D) there is an increase in the rate of change in the price level.
E) the price of at least one good,but possibly more than one good,in the economy increases.

Question

Quizplus · Accepted Answer

Inflation occurs when there is a sustained increase in the overall price level of goods and services, as measured by indices like CPI. Options A, B, D and E describe scenarios that may contribute to inflation, but they do not necessarily lead to inflation.

Inflation Necessarily Occurs When