Question

According to economists, inflation is a. eliminated by the government. b. unavoidable, and therefore something beyond the control of government. c. a general decrease in the level of prices. d. a general rise in the level of prices. e. a general problem for countries with command economies.

Answer 1

Answer: Option D

Explanation: In economics, inflation means the increase in the general price level of goods in an economy and the decrease in the value of money. This process occurs over a period of time.

In a scenario of inflation the purchasing power of the consumers decreases leading to a decrease in demand. Inflation could be controlled but is unavoidable and hence every economy faces some level of inflation every time.

Hence from the above we can conclude that the correct option is D.