Inflation is defined as
A) an increase in the quantity of goods in the consumer's basket.
B) an increase in the level of GDP.
C) an increase in the price of an important good like gasoline.
D) an increase in the overall level of prices.

Question

Quizplus · Accepted Answer

Inflation is defined as an increase in the overall level of prices, which means that the general price level of goods and services in an economy has increased over time. Option A refers to an increase in the quantity of goods in the consumer's basket, which is not a definition of inflation. Option B refers to an increase in GDP, which is not necessarily inflationary. Option C refers to an increase in the price of a specific good, which is not a broad enough definition of inflation.

Inflation Is Defined as