Question
Which of the following best describes a general rise in
the prices?Solution
Inflation is the general increase in the prices of goods and services in an economy over time. When inflation occurs, the purchasing power of a currency decreases, which means that the same amount of money can buy fewer goods and services than before. Inflation can be caused by a variety of factors, including an increase in demand for goods and services, a decrease in supply of goods and services, or an increase in the cost of production. 
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