General rise in prices over time is called what?

Prepare for the WJEC GCSE Business Studies Test with interactive quizzes and detailed explanations. Enhance your knowledge on key business concepts and boost your exam confidence.

Multiple Choice

General rise in prices over time is called what?

Explanation:
Inflation is the sustained rise in the general price level of goods and services over time. When prices rise across many everyday items, money buys less than before, so the cost of living increases. Deflation would be prices falling, stagnation means slow or no economic growth (often with low or zero inflation), and recession is a period of economic decline. So the description given matches inflation.

Inflation is the sustained rise in the general price level of goods and services over time. When prices rise across many everyday items, money buys less than before, so the cost of living increases. Deflation would be prices falling, stagnation means slow or no economic growth (often with low or zero inflation), and recession is a period of economic decline. So the description given matches inflation.

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