Asked by Brandon Ramdeholl on May 12, 2024
Verified
Inflation is:
A) a reduction in everyone's standard of living.
B) a rise in the real prices of all goods and services.
C) a general and continuing rise in the money prices of goods and services.
D) a continuing rise in everyone's standard of living.
E) an increase in the value of money compared to the value of goods.
Standard of Living
A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographic area.
Real Prices
Prices that have been adjusted for inflation or deflation, reflecting the purchasing power of money in different time periods.
Money Prices
The cost of goods and services as expressed in monetary units, reflecting the amount of money needed to purchase them.
- Acquire an understanding of how inflation is defined and measured through several indexes, including the CPI.
Verified Answer
JV
Jamielyn ValenciaMay 13, 2024
Final Answer :
C
Explanation :
Inflation refers to a general and continuing rise in the money prices of goods and services. This means that the purchasing power of money decreases, leading to a rise in prices of goods and services over time. This can lead to a reduction in the standard of living for some individuals and can have negative effects on the economy as a whole.
Learning Objectives
- Acquire an understanding of how inflation is defined and measured through several indexes, including the CPI.