A sustained rise in the general price level in an economy is called ________.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Inflation.
|
Inflation |
A sustained rise in the general price level in an economy is called Inflation. |
|
What is Inflation? |
Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. |
|
What is Stagflation? |
A situation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high. |
|
What is Deflation? |
Deflation is a general decline in the prices of goods and services, typically associated with a contraction in the supply of money and credit in the economy. |
|
What is Disinflation? |
It is a temporary slowing of the pace of price inflation. |