WBCS.LIVE practice question

Inflation exists when:

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. There is general increase in the prices over time
  2. There are periodic decreases in the price level
  3. There are continuous increases in the output level over time
  4. There is rise in the purchasing value of money

Correct answer and explanation

Correct answer: There is general increase in the prices over time