The condition of an increase in prices NOT triggered by an increase in demand is called_______________?
Correct answer: C. inflation
- A. hyperinflation
- B. the Pigou effects
- C. inflation
- D. restraint of trade
Explanation
A general and continuing rise in the overall price level is called inflation, whether it results from demand pressure or rising costs. Hyperinflation is only an extreme form, while the Pigou effect is a wealth effect on demand.
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