Question

Which scenario is an example of inflation?

1. The cost of cars has dramatically increased over the last 50 years.
2. As spending decreased during a recession, people lost their jobs.
3. A natural disaster can cause damage and lead to unemployment.
4. When demand is low, companies lower the price of products.

Answer 1

1. is the correct answer

Answer 2

#1

Step-by-step explanation:

inflation is when there is an increase in pricing