What is inflation?

I took economic, but I’m on a ‘g’ so I’m failing badly

When the dollar goes up dramatically in a short period of time.

Thank you :)

lol, i was failing, but got 95% on the exam,, so im happy haha.. g for good? lol

I thought it was down. That’s why everything costs more suddenly: each dollar is worth less, and therefore you have to give up more of them to pay for the same item.

Now I’m confused

“fall in the purchasing value of money” There are more paper dollars, but the same amount of gold, or value behind them, so each one is worth less. As an example, lets say you make teddy bears really well. If you make three of those teddy bears, and everyone wants one, they’re going to be worth a lot. But if you make a million of them, and they can be found everywhere, then it’s not that big of a deal having one, they’re not worth as much. Inflation is when there are so many teddy bears (dollar bills, coins) that they’re not worth as much anymore. Because they’re not worth as much, it takes more of them to pay for something: if you wanted to trade your teddy bear for a…moose? you would have to give up more teddy bears for that moose if there were a lot of teddy bears and they were worth less.

things cost more, moneys worth less

deflation is when purchasing power goes up, inflation is when purchasing power goes down.. a gradual inflation is better for the entire economy, but deflation is better for an individual who likes to buy things ahha

I believe is a sudden increase of Market price, in which Large amount of Money, chase small quantity of goods at a of period of time. At this time, there is an In-equilibrium in the Trade Market of the country.

Inflation is the devaluing of currency. It happens when new money is created out of thin air and introduced into the monetary system. Basically goods and services have a steady value, but when new money is made, there’s more money in the system to go around, so that same money now has less value and it takes more of it to purchace the same goods and services. In short, prices rise. Material value doesn’t rise, money value falls. Watch Zeitgeist Addendum.