Inflation occurs whenever / » Macro Economics 2 solved MCQs / By admin Question: Inflation occurs whenever A. the price level rises. B. the money supply increases. C. the price level rises continuously over a period of time. D. the price level falls continuously over a period of time. Answer» c. the price level rises continuously over a period of time. Note: The above multiple-choice question is for all general and Competitive Exams in India.