What is defined as a continuous rise in the price of goods and services?

What is defined as a continuous rise in the price of goods and services?

• A. Monetary Policy
• B. Inflation
• C. National Debt
• D. Depression

Answer: (B)

Inflation is defined as a sustained rise in the general price level of goods and services in an economy over time. When prices keep climbing, the purchasing power of money falls, meaning you can buy less with the same amount of money. This broad increase across many goods and services is what makes inflation different from a one-off price increase or a rise in prices for just a single item. The other terms refer to different ideas: monetary policy is the actions central banks take to influence inflation and employment; national debt is the total amount a government owes; a depression is a severe, prolonged economic downturn. So a continuous rise in prices best fits the concept of inflation.

Inflation is defined as a sustained rise in the general price level of goods and services in an economy over time. When prices keep climbing, the purchasing power of money falls, meaning you can buy less with the same amount of money. This broad increase across many goods and services is what makes inflation different from a one-off price increase or a rise in prices for just a single item. The other terms refer to different ideas: monetary policy is the actions central banks take to influence inflation and employment; national debt is the total amount a government owes; a depression is a severe, prolonged economic downturn. So a continuous rise in prices best fits the concept of inflation.