Question 40 - Social Studies Practice Test for the GED Test

Inflation is an economic concept describing the relationship between goods and wages.

Inflation is the concept used to describe how state governments allocate their federal funds.

Inflation is the term used to describe the ever-growing cost of goods; while prices may increase, goods may remain the same in quantity or quality.

Inflation is a term used to describe the idea that governments will mimic each other; a healthy government budget will encourage neighboring countries to follow suit.