The price level that people expected rise above.
What is the term for price increases?
The rate at which prices rise over a given time is called inflation. A country's cost of living or overall increase in prices are two examples of broad measures of inflation.
What happens when the price level rises above expectations?
The economy's leading indicators are price levels; Inflation occurs when prices rise in response to increased demand, while deflation occurs when prices fall in response to decreased demand.
What happens when the price rises?
The average price of all goods and services sold rises when an economy's price level rises. The percentage increase in a nation's price level over some time, typically a year, is what is used to calculate inflation. This indicates that inflation is taking place during the time when prices rise.
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