What is "inflation"?

A A decrease in the general price level

B A sustained increase in the general price level over time

C An increase in GDP

D A decrease in unemployment

✓ Correct Answer: Option B

Inflation is a sustained rise in the general level of prices, reducing the purchasing power of money over time.

💡 Why is B) the correct answer?

The correct answer to the question "What is "inflation"?" is Option B: A sustained increase in the general price level over time.

The other options — A) A decrease in the general price level, C) An increase in GDP, D) A decrease in unemployment — are incorrect for this IB Exam Prep question. As explained above: Inflation is a sustained rise in the general level of prices, reducing the purchasing power of money over time.

📚 About This IB Exam Prep Practice Question

This 1-level IB Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free IB Exam Prep practice test or use flashcards for spaced repetition review.

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What is "inflation"?

✓ Correct Answer: Option B

📚 About This IB Exam Prep Practice Question

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