ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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creeping inflation
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galloping inflation
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hyperinflation
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cost-push inflation
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Detailed explanation-1: -Hyperinflation is an extreme case of inflation where the inflation rate increases above 100%. During hyperinflationary periods, the price level increases by about 500% to 1000% per year. Here, prices cannot be controlled.
Detailed explanation-2: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.
Detailed explanation-3: -Hyperinflation is a sudden, excessively high spike in inflation of at least 50% per month, or 14, 000% per year.
Detailed explanation-4: -Demand-pull inflation arises when the total demand for goods and services (i.e. ‘aggregate demand’) increases to exceed the supply of goods and services (i.e. ‘aggregate supply’) that can be sustainably produced.
Detailed explanation-5: -Hyperinflation – an explanation It refers to a situation where the prices of goods and services rise uncontrollably over a defined period of time. In general, the term is used when the rate of inflation increases at more than 50% a month.