We want to see which one of the given options is the best definition of inflation. The correct option is the second one:
"a gradual increase in the price of goods and services"
What is inflation?
By definition, inflation refers to a progressive increase in the price of goods and services for a given economy, such that it also implies a reduction in the purchasing power of money.
This means that, because each element becomes more expensive, the same money that before was enough to buy a given selection of items, after the inflation is not enough to buy the same selection of items, this is why inflation is related to a reduction in the purchasing power of money.
Now that we know this, we can see that the correct option is the second one
"A gradual increase in the price of the goods and services".
The other option that talks about an increase is the one where the increase is exponential, notice that the inflation is progressive, while an exponential increase would not be exactly progressive (as it gets faster and faster).
If you want to learn more about inflation, you can read:
https://brainly.com/question/8149429
