Select the correct definition of inflation. a specific increase in the price of a good or service attributable to changes in supply or demandan increase in the level of output in an economy evidenced by a rising gdpa general and ongoing rise in unemployment a set of sustained increases in the price of a firm's stocks general and ongoing rise in the average level of prices in an economya general and ongoing decline in the level of prices in an economy

The correct answer is (C) a general and ongoing rise in the average level of prices in an economy.  

Explanation:

The definition above, usually applies to inflation only if the rise happens for a certain period of time. In other words, the price does not fluctuate. Though oftentimes we consider inflation as bad, this occurrence brings both positive and negative effects. Negative effects of inflation are seen in the discouragement of savings and investments and goods shortages because people might consider buying products at large quantities due to the price volatility. Positive effects of inflation include the decrease of unemployment.  

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