A condition characterized by continuing rise in prices over a period of time refers to:
A)inflation.
B)depression.
C)a recession.
D)economic contraction.
E)deflation.

Question

Quizplus · Accepted Answer

Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.

A Condition Characterized by Continuing Rise in Prices Over a Period