Question

What is “the general increase in prices of goods and services”?

Answer 1

The general increase in prices of goods and services is known as inflation. It refers to the sustained increase in the overall price level of goods and services over a period of time, usually measured by a price index such as the Consumer Price Index (CPI). This means that the purchasing power of money decreases over time, as the same amount of money can buy fewer goods and services than before. Inflation can be caused by a variety of factors such as changes in demand, supply shocks, changes in government policies, and changes in the money supply.

Answer 2

The general increase in prices of goods and services is called inflation. Inflation is typically measured as the percentage increase in the average price level of a basket of goods and services over a period of time, such as a year. Inflation can be caused by a variety of factors, such as an increase in the money supply, a decrease in the supply of goods and services, or an increase in demand for goods and services. High or unpredictable inflation can have negative effects on an economy, such as reducing the purchasing power of consumers and businesses, and making it more difficult to plan and invest for the future.

Answer 3

The general increase in prices of goods and services is referred to as inflation. Inflation results in a decrease in the purchasing power of a currency over time.