Which identifies the increase in the price of goods and decrease in the value of money?
recession
inflation***
unemployment
stagnation
i wasn't clear which answer you were saying you thought was right so for future people, B is correct
The correct answer is inflation.
The correct answer is inflation. Inflation refers to the general increase in prices of goods and services over time, which leads to a decrease in the purchasing power of a currency. This means that as inflation occurs, the same amount of money buys fewer goods and services.
To identify inflation, you can look for certain indicators. One common indicator is the consumer price index (CPI), which measures the average change over time in the prices paid by consumers for a market basket of goods and services. If the CPI shows a consistent increase over a period, it indicates inflation.
Another indicator is the inflation rate, which measures the percentage change in the average price level over time. Central banks and government institutions often monitor and report the inflation rate regularly. If the inflation rate is positive and rising, it indicates an increase in the price of goods and a decrease in the value of money.
It's important to note that inflation is different from other economic terms such as recession (which refers to a significant decline in economic activity) or unemployment (which refers to the percentage of the workforce that is without a job). Inflation specifically focuses on the increase in prices and the decrease in the value of money.