Which is the best definition of inflation? (A) a gradual reduction in the price of goods and services (B) a gradual expansion in the price of goods and services (C) an exponential reduction in the price of goods and services (D) an exponential expansion in the price of goods and services

Succinctly, inflation is the gradual expansion in the price of goods and services. The more extreme type of inflation is called hyperinflation, where prices of goods and services expand exponentially. Contrary to common knowledge, inflation is not necessarily a bad thing. Economists attribute a manageable inflation to a growing economy.