We say that an economy experience inflation if - prices of all goods have increased. - relative price between capital goods and consumption goods has increased. - GDP deflator this year is smaller than GDP deflator of the previous year. - nominal GDP has increased.

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Business

Camden Gray

23 September, 10:30

We say that an economy experience inflation if - prices of all goods have increased. - relative price between capital goods and consumption goods has increased. - GDP deflator this year is smaller than GDP deflator of the previous year. - nominal GDP has increased.

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Carmen Todd · Answer 1

We say that an economy experience inflation if prices of all goods have increased.

Explanation:

Inflation is the sustained increase in the general price level.

It must be sustained over time and must be of most prices of goods and / or services.