Which of the following scenarios shows evidence of inflation?
A)The economic growth rate in a country increases significantly.
B)The United Kingdom experiences a recession.
C)Watermelons are labeled "Buy one, get one free" at the local grocery.
D)The average house price in an economy rises.

Question

Quizplus · Accepted Answer

The rise in average house prices indicates inflation as it suggests a general increase in the price level in the economy. Option A indicates economic growth, but not necessarily inflation. Option B indicates a recession, which is the opposite of inflation. Option C is an example of a sales promotion technique and does not necessarily indicate inflation.

Which of the Following Scenarios Shows Evidence of Inflation