Which of these events would be a result of inflation? A business reports a loss for a tax year. OACEO pays less in taxes than five years ago. A company scales back production. An economist advises expansionery policy.

## Step 1<br />Inflation is a term used in economics to describe a general increase in prices and a decrease in the purchasing value of money. This means that the same amount of money can buy fewer goods and services than it could before.<br /><br />## Step 2<br />Given the options, we need to identify which event would be a result of inflation. <br /><br />## Step 3<br />The event that would be a result of inflation is when an economist advises an expansionary policy. This is because during inflation, the value of money decreases, which means that more money is needed to buy the same goods and services. Therefore, an economist would advise an expansionary policy to stimulate economic growth and increase the money supply.