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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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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