Social StudiesQuestion 100 of 120
What is inflation?
a.A type of government tax
b.A drop in the population
c.An increase in exports only
d.A rise in the general level of prices
Explanation
Inflation is a sustained increase in the overall level of prices, which reduces the purchasing power of money. When inflation is high, each dollar buys less than before. Central banks often try to keep inflation low and stable.
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