ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When prices of goods and services rise at a double, triple digit rate per annum that situation is known as ‘galloping inflation ’.

Detailed explanation-2: -In economics, hyperinflation is used to describe situations where the prices of all goods and services rise uncontrollably over a defined time period. In other words, hyperinflation is extremely rapid inflation. Generally, inflation is termed hyperinflation when the rate of inflation grows at more than 50% a month.

Detailed explanation-3: -When inflation rises quickly: lenders will be hurt and borrowers will benefit. When disinflation occurs: and inflationary expectations do not change, unemployment rates will fall.

Detailed explanation-4: -What Causes Hyperinflation? Hyperinflation is caused by a rapid increase in a country’s money supply, typically when a government creates more and more money. As more money becomes available, the value of each individual unit of currency drops and prices rise.

Detailed explanation-5: -Hyper-Inflation In hyperinflation, the price level increases at a rapid rate. In fact, you can expect prices to increase every hour. Usually, this leads to the demonetization of an economy.