Asked by Torrance Thomas on Jun 26, 2024
Verified
Inflation is
A) a rise in the price of every good and service.
B) a rise of exactly a specified percentage in the price of every good or service.
C) a rise in the average price level.
D) a rise in average prices of at least 10 percent a year.
Inflation
The upward movement in the overall price points of goods and services, cutting down on purchasing strength.
Average Price Level
A measure of the overall level of prices in an economy, often considered in terms of a price index.
Good and Service
Products that satisfy human wants directly (goods) or indirectly (services).
- Understand the concept and measurement of inflation.
Verified Answer
EG
Emily GuggenheimJun 29, 2024
Final Answer :
C
Explanation :
Inflation is defined as a general increase in the average price level of goods and services in an economy over a period of time. It is not a rise in the price of every good and service nor is it necessarily a rise of a specified percentage, nor is it always at least 10 percent a year.
Learning Objectives
- Understand the concept and measurement of inflation.