{"id":93620,"date":"2025-06-01T11:54:12","date_gmt":"2025-06-01T11:54:12","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=93620"},"modified":"2025-06-01T11:54:12","modified_gmt":"2025-06-01T11:54:12","slug":"the-term-inflation-refers-to-the-increase-in","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-term-inflation-refers-to-the-increase-in\/","title":{"rendered":"The term ‘inflation’ refers to the increase in"},"content":{"rendered":"

The term ‘inflation’ refers to the increase in<\/p>\n

[amp_mcq option1=”unemployment rate” option2=”prices of goods and services” option3=”foreign exchange reserves” option4=”interest rates” correct=”option2″]<\/p>\n

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This question was previously asked in<\/div>\n
UPSC Combined Section Officer – 2019-20<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nInflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money \u2013 a loss of real value in the medium of exchange and unit of account within the economy.
\n<\/section>\n
\n– It is about the increase in the *general* price level, not just a few items.
\n– It leads to a decrease in the purchasing power of money.
\n– It is typically measured as an annual percentage increase.
\n<\/section>\n
\nInflation can be caused by various factors, including demand-pull (excess aggregate demand) and cost-push (increase in production costs). It is typically measured using price indexes like the Consumer Price Index (CPI) and Wholesale Price Index (WPI).
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

The term ‘inflation’ refers to the increase in [amp_mcq option1=”unemployment rate” option2=”prices of goods and services” option3=”foreign exchange reserves” option4=”interest rates” correct=”option2″] This question was previously asked in UPSC Combined Section Officer – 2019-20 Download PDFAttempt Online Inflation is defined as a sustained increase in the general price level of goods and services in an … <\/p>\n

Detailed SolutionThe term ‘inflation’ refers to the increase in<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1090],"tags":[1483,1120,1190],"class_list":["post-93620","post","type-post","status-publish","format-standard","hentry","category-upsc-combined-section-officer","tag-2019-20","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nThe term 'inflation' refers to the increase in<\/title>\n<meta name=\"description\" content=\"Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money \u2013 a loss of real value in the medium of exchange and unit of account within the economy. - It is about the increase in the *general* price level, not just a few items. - It leads to a decrease in the purchasing power of money. - It is typically measured as an annual percentage increase.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-term-inflation-refers-to-the-increase-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The term 'inflation' refers to the increase in\" \/>\n<meta property=\"og:description\" content=\"Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money \u2013 a loss of real value in the medium of exchange and unit of account within the economy. - It is about the increase in the *general* price level, not just a few items. - It leads to a decrease in the purchasing power of money. - It is typically measured as an annual percentage increase.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-term-inflation-refers-to-the-increase-in\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:54:12+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The term 'inflation' refers to the increase in","description":"Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time. 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