Question: What is inflation? (2023)

Options:

1. A decrease in prices
2. An increase in the value of money
3. A sustained increase in the general price level
4. A measure of economic growth

Correct Answer: A sustained increase in the general price level

Exam Year: 2023

Solution:

Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time.