Question

We say that an economy experience inflation if- prices of all goods have increased.- relative price between capital goods and consumption goods has increased.- GDP deflator this year is smaller than GDP deflator of the previous year.- nominal GDP has increased.

Answer 1

Answer:

We say that an economy experience inflation if prices of all goods have increased.

Explanation:

Inflation is the sustained increase in the general price level.

It must be sustained over time and must be of most prices of goods and/ or services.