Martha visits a departmental store and learns that a box of exotic candles would cost her ten percent more than what she had paid for it six months ago.In this scenario,Martha has to pay more as a result of _____.
A)inflation
B)recession
C)stagnation
D)stagflation

Question

Martha visits a departmental store and learns that a box of exotic candles would cost her ten percent more than what she had paid for it six months ago.In this scenario,Martha has to pay more as a result of _____.​
A)inflation
B)​recession
C)​stagnation
D)stagflation

Quizplus · Accepted Answer

Inflation is the general increase in the price level of goods and services over time. It results in a decrease in the purchasing power of money. If a box of candles costs 10% more than what Martha had paid for it six months ago, it indicates that the price level has increased due to inflation, and Martha has to pay more. The other options, such as recession, stagnation, or stagflation, do not necessarily relate to an increase in the price level of goods and services.

Martha Visits a Departmental Store and Learns That a Box