If this year's price level exceeds last year's
A) the inflation rate between these years has been positive.
B) the inflation rate is accelerating.
C) deflation is occurring.
D) no relative price changes are occurring.

Question

Quizplus · Accepted Answer

Inflation is defined as a general increase in prices, so if this year's price level exceeds last year's, it means that the inflation rate has been positive, indicating that prices on average have gone up.

If This Year's Price Level Exceeds Last Year's