What term means an increase in the overall level of prices over an extended period?

• A. Inflation
• B. Interdependence
• C. Intellectual Property
• D. Innovations

Answer: (A)

Inflation is the sustained rise in the general price level of goods and services across an economy over time, which erodes the purchasing power of money. It explains why overall costs creep up rather than staying the same. The other ideas describe different concepts: interdependence is about economies depending on each other; intellectual property covers legal rights to creations; innovations are new ideas or improvements. So inflation best fits the description of prices increasing across the economy over an extended period.