Question

1. inflation is defined as ______.

a buying a smaller portion of things today than before
b buying the same amount as in the past while spending less
c selling goods at a lower price than before
d buying a larger portion of things today than before

Explanation:

Inflation refers to a general increase in prices, which reduces the purchasing power of money. So with the same amount of money, one can buy a smaller portion of goods/services today than before. Option a matches this concept. Option b is incorrect as inflation would require spending more (or same amount buys less), not less. Option c is about selling at lower prices (deflation - like concept for selling, not inflation's buying - power impact). Option d is wrong as inflation reduces buying power, so one can't buy more.

Answer:

a. buying a smaller portion of things today than before