Answer to Question #12718 in Macroeconomics for Natasha haitembu
What do economist mean by the word inflation?
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.