Inflation is best defined as
A)a price decrease.
B)a relative price increase.
C)an increase in the general price level.
D)an increase in the price of a single necessity.

Question

Quizplus · Accepted Answer

Inflation refers to a sustained increase in the general price level of goods and services over a period of time. This means that for a given amount of money, less can be purchased due to the overall increase in prices. Inflation is often measured by the Consumer Price Index (CPI), which measures the average change in prices of goods and services purchased by households. Choices A, B, and D do not accurately describe inflation.

Inflation Is Best Defined as