Answer:
Inflation and Relative Price Increase
Step-by-step explanation:
Inflation represents an increase in all prices or wages which results in a drop or reduction in money's purchasing power. Of course, the drop in the purchasing power of money is as a result of the inability to use the same amount of money used in a previous period to purchase the same quantity of goods in the current period as a result of a general shift in prices.
A Relative Price Increase on the other hand, unlike inflation is not a general price increase as a result in change of monetary policies, it represents changes in the price of individual goods as response to the flows of demand and supply of different goods in teh economy. An increase in the relative price of goods for instance could be as a result of demand greater than supply while a decrease is the vice versa of teh phenomenon.
Inflation is a monetary policy effect, while relative price increase is a market (demand and supply) caused effect on goods and services.