Concept:Inflation occurs when the money supply grows faster than the production of goods and services.Explanation:When more money circulates in the economy without a matching increase in output, consumers have more money to spend.However, the quantity of available goods remains unchanged.This creates a situation where too much money chases too few goods.As a result, producers raise prices to take advantage of the high demand.The general price level therefore rises continuously, which is known as inflation.Answer:C. inflation