Sustained inflation over many years is most likely due to increases in the money supply in
Jexcess of increases in potential output.

Question

Quizplus · Accepted Answer

Sustained inflation occurs when there is too much money chasing too few goods and services, leading to a general rise in prices. This is usually caused by an increase in the money supply that is greater than the increase in potential output, resulting in excess demand for goods and services.

Sustained Inflation Over Many Years Is Most Likely Due to Increases