Question
What is the problem with inflation?
a
When inflation is above 3%, people are able to buy too much
b
None of these options
c
When inflation is below 3%, people are too comfortable with the price level
d
When inflation is above 3%, purchasing power declines
a
When inflation is above 3%, people are able to buy too much
b
None of these options
c
When inflation is below 3%, people are too comfortable with the price level
d
When inflation is above 3%, purchasing power declines
Answers
GPT-4o mini
The correct answer is:
**d. When inflation is above 3%, purchasing power declines.**
Inflation represents the rate at which the general level of prices for goods and services rises, and subsequently, purchasing power falls. When inflation is high, consumers can buy less with the same amount of money, which can lead to a decline in living standards.
**d. When inflation is above 3%, purchasing power declines.**
Inflation represents the rate at which the general level of prices for goods and services rises, and subsequently, purchasing power falls. When inflation is high, consumers can buy less with the same amount of money, which can lead to a decline in living standards.