Question:easy

Inflation implies

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Inflation is about the definition using a price index, not about what causes prices to rise.
Updated On: Jul 14, 2026
  • Rise in budget deficit
  • Rise in general price index
  • Rise in price of consumer goods
  • Rise in money supply
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The Correct Option is B

Solution and Explanation

Standard economics definition: inflation = sustained rise in the general price level (index), not a specific cause like money supply.

Final Answer: Option (2).
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