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NDA 2023 GAT · General Knowledge · Indian Economy · easy

Which term describes a sustained rise in the general price level in an economy?

Single correct option

Which term describes a sustained rise in the general price level in an economy?
  1. A. Inflation
  2. B. Deflation
  3. C. Stagflation only when output falls
  4. D. Devaluation
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Answer: (A) Inflation

Inflation is a persistent increase in the general price level that lowers the purchasing power of money. Deflation is a fall in prices, and devaluation is a deliberate reduction in the official exchange rate of a currency under a fixed exchange rate regime. Stagflation combines high inflation with stagnant output, not a general term.
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