What is inflation
Economics
ScanSolve AI Answer
Answer
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.
For example, if inflation is 2% per year, a basket of goods that cost $100 today would cost $102 in one year.
Was this helpful?
Still stuck on this one?
Ask a follow-up, and the answer starts from this question.
Got a different question?Ask your own question
More Economics Questions
QWhat's inflation in terms of economicQWhich of the following scenarios is an example of inflation?QHow does inflation work and what causes it?Q1.a)i) Creeping inflation refers to a mild and gradual rise in the general price level over a long…QList three types of Inflation.
Browse by topic:Macroeconomics