An increase in the average price level of goods and services is called:
A) deflation.
B) disinflation.
C) inflation.
D) cost-push deflation.

Question

Quizplus · Accepted Answer

Inflation is the term used to describe a rise in the average price level of goods and services. Deflation is the opposite of inflation, meaning a decrease in the average price level, while disinflation refers to a slower rate of inflation, but still involves an increase in the average price level. Cost-push deflation is not a commonly used term and is not a correct answer choice.

An Increase in the Average Price Level of Goods and Services