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Which Phrase Best Describes Inflation? General Rise in Prices over Time Sudden, Sharp Increase in Prices Decline in Currency Exchange

Soru

Which phrase best describes inflation?
General rise in prices over time
Sudden, sharp increase in prices
Decline in currency exchange rates
Gradual decline the price level

Which phrase best describes inflation? General rise in prices over time Sudden, sharp increase in prices Decline in currency exchange rates Gradual decline the price level

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Uzman doğrulaması
Elit · 8 yıl öğretmeni

Cevap

'General rise in prices over time'

Daha Fazla

## Step 1Inflation is a term used in economics to describe a general rise in prices over time. This means that the purchasing power of money decreases, meaning that the same amount of money can buy fewer goods and services than it could before.## Step 2The other options provided do not accurately describe inflation. A sudden, sharp increase in prices is more indicative of hyperinflation, which is a very high and accelerating rate of inflation. ## Step 3A decline in currency exchange rates is not the same as inflation. While a decline in currency exchange rates can lead to inflation, it is not the definition of inflation.## Step 4A gradual decline in the price level is the opposite of inflation. This is known as deflation, which is a decrease in the general price level of goods and services.