When the general price level of goods and services in an economy rises over a period of time, it is known as:

A Deflation

B Recession

C Inflation

D Depression

✓ Correct Answer: Option C

Inflation refers to the sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of currency.

💡 Why is C) the correct answer?

The correct answer to the question "When the general price level of goods and services in an economy rises over a period of time, it is known as:" is Option C: Inflation.

The other options — A) Deflation, B) Recession, D) Depression — are incorrect for this GED Exam Prep question. As explained above: Inflation refers to the sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of currency.

📚 About This GED Exam Prep Practice Question

This 2-level GED Exam Prep question from the Social Studies 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 GED Exam Prep practice test or use flashcards for spaced repetition review.

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When the general price level of goods and services in an economy rises over a period of time, it is known as:

✓ Correct Answer: Option C

📚 About This GED Exam Prep Practice Question

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