Question

Which of the following best describes inflationary

Q: Answer-Which of the following best describes inflationary pressure in an economy?

Inflationary pressure occurs when the demand for goods and services exceeds their supply, leading to rising prices. It typically happens in a growing economy with strong consumer demand.

pressure in an economy?

A When the purchasing power of money increases

B When the demand for goods and services exceeds supply

C When prices fall consistently over time

D When unemployment rates rise

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Which of the following best describes inflationary

Solution