Last month, a gallon of milk cost $2 and a gallon of gas cost $4. This month, milk is $4 per gallon and gas is $6 per gallon. Matthias is not sure what is going on with the economy. How would an economist BEST describe what is happening?

Group of answer choices.

A. The rate of return has increased significantly.

B. There has been a lot of inflation in the market.

C. Prices for goods are experiencing compounding interest.

D. Asset allocation is on the rise in the economy.

B. There has been a lot of inflation in the market.

Explanation:

Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.

Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.

When this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.

Furthermore, high inflation is typically a sign of a struggling economy because the wages earned by consumers cannot keep up with the increase in prices of goods and services.

In this scenario, a gallon of milk cost $2 and a gallon of gas cost $4 last month. This month, milk is $4 per gallon and gas is $6 per gallon.

Therefore, an economist would best describe what is happening as having a lot of inflation in the market.

answer; /// the correct answer is (10) days; /// good luck

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )