Question

What does this term mean?

Does it basically mean..

The rate at which the general level of prices for goods and services is rising.

Could you sort of simplify it a bit more. What does general level mean?

Answer 1

An economy with fairly constant output growth and low and stable inflation. Basically, there is not too much money being lost, and the money coming in is at a good level. Good enough that there are not too many problems. Does that make sense?