ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Inflation Percentage
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Rate
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Inflation
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Inflation Rate
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Detailed explanation-1: -Inflation is a sustained, generalized increase in the prices of goods and services in an economy.
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: -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-4: -The consensus view among economists is that sustained inflation occurs when a nation’s money supply growth outpaces economic growth.
Detailed explanation-5: -Inflation: It is a sustained rise in the general price level in an economy.