Multiple choice

During inflation period, which of the following happens to the general level of prices?

  1. Increase in prices

  2. Decrease in prices

  3. Prices remain constant

  4. Fluctuation in prices

  5. All of the above
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A Correct answer
Explanation

It is the right answer. In economics, inflation is a persistent increase in the general price level of goods and services in an economy over a period of time.

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