169k views
3 votes
Inflation is an increase in:

a. prices of all products in the economy.
b. homes, autos and basic resources.
c. the general price level of products.
d. none of these.

1 Answer

2 votes

Final answer:

Inflation is a continuous rise in the general price level of an entire economy, measured by the consumer price index, and differs from one-time price changes.

Step-by-step explanation:

Inflation is the term used to describe a general and ongoing rise in the level of prices in an entire economy. Inflation indicates a sustained pressure for prices to increase across most markets in the economy, contrasting with one-time price changes that represent shifts from one equilibrium to another.

It is measured using tools such as the consumer price index (CPI), and a major goal for economies is to maintain low inflation rates, typically around 1–2%, to preserve the standard of living.

User Deloreyk
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories