ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following types of inflation involves the government using financial stimuli to increase the country’s output?
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Deflation
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Disinflation
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Reflation
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Hyperinflation
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Explanation:
Detailed explanation-1: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.
Detailed explanation-2: -In a free market economy, where prices are allowed to take its own course, open inflation occurs. 2. Suppressed Inflation: When government prevents price rise through price controls, rationing, etc., it is known as Suppressed Inflation.
Detailed explanation-3: -Important Terms related to Inflation Open inflation: A situation where price level rises without any price control measures by the government.
Detailed explanation-4: -1. Headline inflation refers to the change in value of all goods in the basket. 2. Core inflation excludes food and fuel items from headline inflation.
There is 1 question to complete.