As long as prices of products continue to rise faster than costs in an inflationary environment, reported profits will generally continue to rise.

Question

Quizplus · Accepted Answer

Inflationary environments lead to higher prices, which can result in higher reported profits for companies as they charge more for their products. However, if costs increase faster than prices, profits can decrease even in an inflationary environment.

As Long as Prices of Products Continue to Rise Faster