Answered

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Question 7 (Multiple Choice, Worth 5 points)

Which phrase best describes inflation?

A. General rise in prices over time
B. Sudden, sharp increase in prices
C. Decline in currency exchange rates
D. Gradual decline in the price level

Sagot :

GinnyAnsweridn

Final answer:

Inflation is the general rise in the level of prices in an economy, reducing the purchasing power of money.


Explanation:

Inflation is a general and ongoing rise in the level of prices in an entire economy, leading to a reduction in the purchasing power of money. It is characterized by a persistent increase in the general price level of goods and services over time.

When the overall price level rises, each unit of currency buys fewer goods and services, reflecting a loss of real value in the economy. Inflation does not refer to changes in relative prices but indicates a broad pressure for prices to rise across different markets.


Learn more about Inflation here:

https://brainly.com/question/51526287


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