One fundamental idea in macroeconomics about inflation is:

One fundamental idea in macroeconomics about inflation is: 




A. if all prices rise, then inflation doesn't really affect anyone's purchasing power.

B. when all prices rise, inflation occurs and everyone is worse off.

C. keeping prices constant is the only way to ensure increasing purchasing power over time.

D. if all prices decline, the purchasing power of everyone declines.



Answer: A


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