In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. Inflation occurs whenever the demand for goods and services tends to be greater than the supply. In a period of prosperity when almost everyone has a job, many people become too optimistic. They spend their earnings freely and greatly increase their credit purchases, especially those made on the installment plan. The demand for goods of all kinds tends to increase rapidly. What happens? Prices rise. 1. Fill out the following table according to the structure of the paragraph. 2. What is the definition of inflation? __________________________________________________________________________