ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Inflation
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Inflation rate
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Deflation
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Hyperinflation
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Detailed explanation-1: -During the observation period from 1960 to 2021, the average inflation rate was 3.8% per year. Overall, the price increase was 829.57%. An item that cost 100 dollars in 1960 costs 929.57 dollars at the beginning of 2022. For January 2023, the year-over-year inflation rate was 6.4%.
Detailed explanation-2: -The most well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.
Detailed explanation-3: -Economists measure the price level with a price index. A price index is a number whose movement reflects movement in the average level of prices. If a price index rises 10%, it means the average level of prices has risen 10%.
Detailed explanation-4: -The correct answer Running. A sudden acceleration in the rate of rising prices is referred to as Running Inflation. When prices rise by more than 10% per annum, running inflation occurs.