What is inflation?
Answer and explanation
Correct answer: A. A general and lasting rise in the level of prices
- Step 1: Inflation concerns prices as a whole. Step 2. It must be lasting, not a one-off change. Answer: a general, lasting rise in prices. Why not the others: one product is not inflation, falling prices are deflation, and jobless numbers measure unemployment.
Practise more Économie : croissance, marchés et politiques.
Free questions with an explanation for every one, and full timed French Baccalaureat mock tests.
More Économie : croissance, marchés et politiques questions
- What does gross domestic product (GDP) measure?
- Why do economists use real GDP rather than nominal GDP to compare growth over time?
- How is the unemployment rate calculated?
- When the price of a good rises by 10 percent and the quantity demanded falls by 20 percent, what is the price elasticity of demand and how i…
- In a competitive market, what happens at the equilibrium price?
- How does a monopoly usually differ from a market in perfect competition?