What is responsible for a rise in general price levels of goods and services in a nation’s economy?

A. Inflation

B. Deflation

C. Reflation

D. Stagflation

Answer: Option A

Solution(By Examveda Team)

Inflation is responsible for a rise in general price levels of goods and services in a nation’s economy. Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. It is the constant rise in the general level of prices where a unit of currency buys less than it did in prior periods.