Question

Inflation affects an economy by:

A. limiting international trade opportunities.

B. reducing the size of the labor market.

C. increasing the value of currency.

D. making prices rise over time,

Answer 1

The answer is D

because when prices for energy, food, commodities, and other goods and services rise, the entire economy is affected.

Answer 2

Inflation is defined as the general increase in the price of any commodity in the market. It affects an economy by making prices rise over time,

What is inflation?

Inflation is the term used in the economics, it refers to a general innovative gain or raise in prices of goods and services in an aggregate economy.

When the overall price level rise up, each unit of measurement of currency buy out lesser goods and services, and consequently, inflation agrees to a diminution in the acquisition powerfulness of money.

Therefore, option D is correct.

Learn more about the inflation, refer to:

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