ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What economic phenomenon does the following situation indicate?"Residents of many cities in the country have found that prices for goods and services are steadily increasing throughout the year, but their quality does not change.”
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Crisis of overproduction
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Inflation
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Shortage of goods and services
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Unemployment
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Explanation:
Detailed explanation-1: -Stagflation is a rare economic phenomenon that combines two or three negative economic trends that normally do not occur together: high inflation, poor growth and rising unemployment. It has only occurred two or three times in the past 100 years.
Detailed explanation-2: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.
Detailed explanation-3: -Stagflation is often accompanied by three economic indicators: high inflation, high unemployment and low economic activity.
Detailed explanation-4: -Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year.
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