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Inflation is defined as the situation where most prices in an entire economy are:
ARising up
BFalling down
CFixed by law
DSet abroad
Answer & Solution
Correct answer: A. Rising up
1. Inflation is a statement about prices across a whole economy.
2. A single price can move without inflation occurring.
3. Inflation is when most prices in an entire economy are rising.
4. Falling prices would instead be deflation.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 8 'Inflation'_
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