A rise in prices that is fully offset by increases in quality is called
A) deflation
B) inflation
C) stagflation
D) none of the above

Question

Quizplus · Accepted Answer

None of the given options fit the description of a rise in prices being fully offset by increases in quality. Inflation refers to a general increase in prices without necessarily involving an increase in quality, while deflation refers to a general decrease in prices. Stagflation refers to a situation where there is both inflation and stagnant economic growth, and is also not applicable to a scenario where price increases are fully offset by quality improvements.

A Rise in Prices That Is Fully Offset by Increases