What is the term for a sustained increase in the general price level? (2021)

₹0.0

Question: What is the term for a sustained increase in the general price level? (2021)

Options:

Correct Answer: Inflation

Exam Year: 2021

Solution:

The term for a sustained increase in the general price level is inflation.

What is the term for a sustained increase in the general price level? (2021)

What is the term for a sustained increase in the general price level? (2021)

Step 1: Understand what 'general price level' means. It refers to the average prices of goods and services in an economy.
Step 2: Recognize that a 'sustained increase' means that prices are going up consistently over time, not just temporarily.
Step 3: Learn that when prices rise consistently, it affects the purchasing power of money, meaning you can buy less with the same amount of money.
Step 4: Identify the term used to describe this situation, which is 'inflation'.

No concepts available.