Answer to Question #14237 in Economics of Enterprise for tobias

Question

What does economists mean by the word inflation

Answer 1

Inflation - the rate at which the general level of prices for goods and services
is rising, and, subsequently, purchasing power is falling. Central banks attempt
to stop severe inflation, along with severe deflation, in an attempt to keep the
excessive growth of prices to a minimum.

Inflation - a persistent,
substantial rise in the general level of prices related to an increase in the
volume of money and resulting in the loss of value of currency ( opposed to
deflation).

Inflation means a sustained increase in the aggregate or
general price level in an economy. Inflation means there is an increase in the
cost of living.