An increase in the overall level of prices in an economy is referred to as
A)the income effect.
B)inflation.
C)deflation.
D)the substitution effect.

Name: An increase in the overall level of prices in an economy is referred to as A)the income effect. B)inflation. C)deflation. D)the substitution effect.
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Question

Quizplus · Accepted Answer

Inflation is defined as a general increase in the prices of goods and services in an economy over a period of time, leading to a fall in the purchasing value of money.

An Increase in the Overall Level of Prices in an Economy