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Define Inflation: Inflation is defined as the 'sustained' increase in the level of money prices in the economy as measured by the consumer price index - Leaving Cert Business - Question 9 - 2003
Question 9
Define Inflation: Inflation is defined as the 'sustained' increase in the level of money prices in the economy as measured by the consumer price index. Rising price... show full transcript
Worked Solution & Example Answer:Define Inflation: Inflation is defined as the 'sustained' increase in the level of money prices in the economy as measured by the consumer price index - Leaving Cert Business - Question 9 - 2003
Step 1
Define Inflation
Answer
Inflation refers to the sustained increase in the general price level of goods and services in an economy over a period of time. This is typically measured by the consumer price index (CPI). As prices rise, the purchasing power of currency diminishes, affecting the cost of living for consumers.