What is the definition of inflation?
A.
an increase in demand
B.
an increase in output
C.
an increase in the general price level
D.
an increase in wages
Exam No:0455_s14_qp_13 Year:2014 Question No:19
Answer:
C
Knowledge points:
4.8.1 definition of inflation and deflation
4.8.2 measurement of inflation and deflation : Measurement of inflation and deflation using the Consumer Prices Index (CPI).
4.8.3 causes of inflation and deflation: demand-pull and cost-psh inflation/ demand-side and supply-side
4.8.4 consequences of inflation and deflation : consumers, workers, savers, lenders, firms and the economy as a whole.
4.8.5 policies to control inflation and deflation: The range of policies available to control inflation and deflation and how effective they might be.
Solution:
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