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1 mark

Inflation is

  1. A
    one time price level rise.
  2. B
    increasing profits in production.
  3. C
    increase in deficit financing.
  4. D
    continuous increase in price level.

Solution & Step-by-step Explanation

In macroeconomics, inflation is defined as a sustained and continuous increase in the general price level of goods and services over an extended period. This persistent rise leads to a decline in the purchasing power of the domestic currency.

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Inflation is
A
one time price level rise.
B
increasing profits in production.
C
increase in deficit financing.
D
continuous increase in price level.

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inflationmacroeconomicsmarket dynamics

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