Which of the Following Would Be Defined as Inflation

question 95

Multiple Choice

Which of the following would be defined as inflation?

• A) An increase in medical care costs
• B) A rise in the price of real estates
• C) An increase in the market interest rate
• D) An increase in the average level of prices

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Definitions:

Surplus

The amount by which the quantity of something exceeds its demand, often referring to unsold goods or surplus budget in economics.

Quantity Demanded

The sum total of a particular good or service that consumers are inclined and financially equipped to acquire at a determined price range within a given period.

Quantity Supplied

The volume of a commodity or service that producers are prepared and able to supply at a specified price within a certain timeframe.

Equilibrium Price

The price point at which the supply of an item matches the demand for it, resulting in a stable market situation without excess or shortage.