A low rate of inflation,whereby prices increase so slowly from week to week that we hardly notice the change,is referred to as
A) zero inflation
B) creeping inflation
C) nominal inflation
D) real inflation
E) episodic inflation

Question

Quizplus · Accepted Answer

Creeping inflation refers to a low rate of inflation where prices gradually increase over time. It is known as "creeping" because the increase in prices is slow and steady, and it may not be noticeable until several years have passed. Zero inflation (A) refers to a situation where there is no increase in prices, nominal inflation (C) refers to the rate at which prices are rising without adjusting for inflation, real inflation (D) refers to the rate at which prices are rising after adjusting for inflation, and episodic inflation (E) refers to occasional spikes in inflation rate, followed by a return to a low or moderate rate of inflation.

A Low Rate of Inflation,whereby Prices Increase So Slowly from Week