Answer: Inflation is a general increase in the prices of goods and services in an economy ... each of these goals is intended to promote a stable financial environment. ... Monetary authorities also take exceptional measures in extreme
Explanation:
False, the goal of the inflation measurement is not to make prices unstable.
Inflation means the general rise in the price level of goods and services in economy. It also means the decline of purchasing power of currency of a particular country in a particular period of time
• Inflation can be measured through the Consumer Price Index (CPI)
• Inflation mostly occur when there is increases in production costs (i.e. Raw materials & Wages)
• Inflation can be controlled by reducing the money supply within an economy for a period of time
In conclusion, the goal of inflation measurement is to know the level of inflation in the country.
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