Which of the following statements is NOT true about inflation?
A) Inflation is a sustained increase in the average prices of goods in the economy.
B) During an inflationary period, the prices of some goods will increase while the price of some goods will decrease.
C) When there is inflation, the purchasing power of a dollar decreases.
D) During an inflationary period, the prices of all goods will increase.

Question

Quizplus · Accepted Answer

During an inflationary period, the prices of all goods will not necessarily increase. While there is a general increase in the average price level, some goods may experience a decrease in price due to various factors such as changes in supply and demand or technological advancements.

Which of the Following Statements Is NOT True About Inflation