Inflation as Sustained Price Increase

Steps:

• Recall the economic definition: inflation is a sustained rise in the general price level of goods and services.
• Evaluate choices: identify which describes a rise in prices versus falls or unrelated concepts.
• Eliminate options involving decreases: A, B, and D refer to falls, not rises.
• Confirm C matches the precise definition of accelerating price growth.

Why C is correct:

• Inflation is defined as a sustained increase in the general price level, so a fall in the rate of increase (disinflation) is not inflation but a slowdown in its pace.

Why the others are wrong:

• A describes a recession, not inflation.
• B describes deflation, the opposite of inflation.
• D describes a potential economic contraction, unrelated to price changes.

Final answer: C