Question

What is inflation? Increase in taxes on the wealthy Decrease in price due to surplus of goods Increase in price due to shortage of goods Decrease in spending on military equipment What is inflation? Increase in taxes on the wealthy Decrease in price due to surplus of goods Increase in price due to shortage of goods Decrease in spending on military equipment What is inflation? Increase in taxes on the wealthy Decrease in price due to surplus of goods Increase in price due to shortage of goods Decrease in spending on military equipment What is inflation? Increase in taxes on the wealthy Decrease in price due to surplus of goods Increase in price due to shortage of goods Decrease in spending on military equipment

Answer 1

In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.

Step-by-step explanation:

The simple definition of inflation is the sustained upward movement in the overall price level of goods and services in an economy. Holding all else constant, this corresponds with a loss of purchasing power for a currency utilized within the economy.

Answer 2

Answer: Increase in price due to shortage of goods

Step-by-step explanation:

Inflation simply means when the prices of goods and services increase. Inflation can be as a result of the shortage of goods. When the quantity demanded for a particular good is more than the quantity supplied, this will lead to shortage thereby leading to sellers increasing the price of the available goods.

Also, when there is increase in the cost of the factors of production, this can also lead to the increase in the prices of goods which ultimately leads to inflation.