Answer and explanation

Correct answer: A. A general rise in prices over time

  1. Step 1: Inflation reduces what money can buy. Answer: A general rise in prices over time. Why not the others: A fall in unemployment, A rise in wages only and A drop in taxes don't fit.

Practise more Economics and Geography.

Free questions with an explanation for every one, and full timed GED Test (High School Equivalency) mock tests.