What is inflation?
A) a decrease in the overall price level
B) an increase in the amount of money in circulation
C) an increase in the overall price level
D) an increase in the overall level of economic activity
Which of the examples provides the best evidence that inflation has occurred?
A) A person whose salary has decreased is able to purchase more goods and services.
B) A person whose salary has decreased is able to purchase fewer goods and services.
C) A person whose salary has remained the same is able to purchase more goods and services.
D) A person whose salary has increased is able to purchase fewer goods and services.
E) A person whose salary has increased is able to purchase more goods and services.