Inflation is a continuous rise in the price of goods and services. Which option best defines this concept?

Inflation is a continuous rise in the price of goods and services. Which option best defines this concept?

• A. A continuous rise in the price of goods and services
• B. A fall in prices
• C. Stable prices
• D. A rise in wages only

Answer: (A)

Inflation is the general, sustained increase in the overall price level of goods and services in an economy over time. It’s about prices rising across many items, not just one, and happening over a period rather than as a one-time jump. The option that describes a continuous rise in the price of goods and services fits this idea precisely, because it captures both the broadness (across many items) and the ongoing nature of inflation. The other ideas point to something different: a fall in prices would be deflation, not inflation; stable prices would mean no inflation; and a rise in wages alone does not define inflation since inflation focuses on prices, not wages.

Inflation is the general, sustained increase in the overall price level of goods and services in an economy over time. It’s about prices rising across many items, not just one, and happening over a period rather than as a one-time jump. The option that describes a continuous rise in the price of goods and services fits this idea precisely, because it captures both the broadness (across many items) and the ongoing nature of inflation. The other ideas point to something different: a fall in prices would be deflation, not inflation; stable prices would mean no inflation; and a rise in wages alone does not define inflation since inflation focuses on prices, not wages.