What is the term for a persistent rise in the general price level?

• A. Final Goods
• B. Injections
• C. Inflation
• D. GDP

Answer: (C)

A persistent rise in the general price level is inflation. The key idea is that inflation describes a sustained increase in the average prices of a wide range of goods and services across the economy, not just a single item. When the price level climbs over time, our money buys less, which is why inflation is often linked to changes in purchasing power and is measured by indexes like the CPI. The other terms don’t fit: final goods are products sold to end users, injections are types of spending that enter the economy’s circular flow, and GDP is the total value of everything produced.