Together these molecules form a liquid. However, taken as separate molecules both of these are gases. The argument is that since together these molecules form the liquid water that separately they must be a liquid as well. The fallacy of division is also the opposite of the fallacy of composition.
See also consumer price index, core inflation, cost-push inflation, demand-pull inflation, GDP deflator, producer price index, purchasing power risk. Inflation. Inflation is a persistent increase in prices, often triggered when demand for goods is greater than the available supply or when unemployment is low and workers can command higher salaries. Moderate inflation typically accompanies economic growth.
Definition and Example of Inflation. Inflation is an economic term that refers to an environment of generally rising prices of goods and services within a particular economy. As general prices rise, the purchasing power of the consumer decreases. The measure of inflation over time is referred to as the inflation rate. In common terminology, many people may refer to inflation as the cost of living.. For example, prices for many consumer goods are double that of 20 years ago.