Inflation is a sustained rise in the general level of prices of goods and services.

question 20 options:
true
false

The statement is true. Inflation is a sustained rise in the general level of prices of goods and services.

Explanation:

Inflation is an increase in the general level of prices for goods and services over the long term. With inflation, for the same amount of money after some time, it will be possible to buy less goods and services than before: the purchasing power of money has decreased, therefore, money has depreciated.  

Although the causes of this inflation are considered differently among economists, it is fairly generally assumed that there is a certain connection between the development of the social money supply and inflation: inflation is probably caused by the relative increase in the amount of money compared to the economic production. If the social money supply increases and there is no higher production in the country, the average price level will rise due to the increased demand for goods. Due to price increases, the purchasing power of money decreases, and less can be purchased for the same amount.

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