Answered

4. What happens to an economy when it reaches the point of inflation?

A. Prices for goods start stabilizing.
B. Prices for goods start decreasing.
C. Prices for goods start increasing.
D. Prices for goods fluctuate quickly.



Answer :

GinnyAnswer

Final answer:

Inflation leads to increasing prices for goods as the value of money decreases.


Explanation:

Inflation occurs when there is a sustained increase in the general price level of goods and services in an economy. When an economy reaches the point of inflation, the prices for goods start increasing as the purchasing power of money decreases. Economists generally view a relatively low and stable level of inflation as desirable but high or unexpected inflation can have economic costs.


Learn more about Inflation and its impact on the economy here:

https://brainly.com/question/30513948


CandleFly

Answer: C. Prices for goods start increasing

Explanation:

Inflation is the rate at which prices increase over a certain period. Some of the measures used to calculate inflation include the increase of prices in goods such as food, water, gas, etc., and the cost of living in a state or country. Some of the causes of inflation can include higher job rates and wages that can cause an increase in household incomes and spending, businesses increasing their prices on specific goods and services, and many more.

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