ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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high price levels in an economy that cn cripple and crush economic growth like in Zimbabwe or Venezuela
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when prices of everything increase faster than the wage level and GDP causing a conflict between objectives
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a sustained increase in the general levels of prices in an economy
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the price increases measured by the PPP which measures price, productivity and profitability-the key drivers of an economy
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Detailed explanation-1: -Inflation is the general rise in the prices of goods and services in an economy, over a period of time. It reduces the purchasing power of consumers, because each unit of currency can purchase fewer products with an increase in the general price levels.
Detailed explanation-2: -Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.
Detailed explanation-3: -The consensus view among economists is that sustained inflation occurs when a nation’s money supply growth outpaces economic growth.
Detailed explanation-4: -The inflation rate is the percentage change in the price index for a given period compared to that recorded in a previous period. It is usually calculated on a year-on-year or annual basis.