An essential attribute of inflation is ?
Correct answer: B. Increase in prices
- A. Fall in production
- B. Increase in prices
- C. Stagflation
- D. None of these
Explanation
Inflation is fundamentally a sustained rise in the general price level, so an increase in prices is its essential feature. Falling production may accompany inflation but is not required.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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