> resulting from and accompanied by a rise in the quantity of money relative to output. > It is possible for the general level of prices to increase due to ev

> resulting from and accompanied by a rise in the quantity of money relative to output. > It is possible for the general level of prices to increase due to events such as wars that interfere with production In that case, output shrunk relative to the money supply (or, the money supply grew relative to output). Milton Friedman's definition is axiomatically correct. Nominal prices rise either because money is worth less (money supply increases) or things have become more expensive to produce (output has fallen).