False. Inflation refers to an increase in the general price level of goods and services in an economy over a period of time. It can lead to a decrease in the purchasing power of a currency.
False. Inflation refers to an increase in the overall price level of goods and services in an economy over a period of time. It results in the gradual decrease in the purchasing power of money.
False. Inflation refers to an increase in the general price level of goods and services over a period of time. It means that the purchasing power of money decreases as prices rise. To determine whether inflation is present, you can look at various economic indicators such as the consumer price index (CPI) or the producer price index (PPI). These indexes measure changes in the average prices of a basket of goods and services over time. When the index shows an upward trend, it indicates inflation. Conversely, when the index shows a downward trend, it suggests deflation, which is the opposite of inflation.
