Question

What happens when people are unable to buy goods because of inflation?

• A. It increases their expenses.
• B. It reduces their expenses.
• C. It increases their standard of living.
• D. It reduces their standard of living.

Answer 1

Answer: (A), (D)

It reduces their standard of living.

When people are unable to buy the goods at high prices, it reduces their standard of living. Standard of living refers to the quantity of material goods and services that ensures a comfortable living. Inflation also increases expenses due to the high price of goods.