When an economy experiences hyperinflation, it has:
A) extremely long-lasting and painful increases in the price level that slows economic growth.
B) a long period of low, steady inflation that aids in economic growth.
C) extremely long-lasting and painful increases in the price level that encourages economic growth.
D) a long period of stagnant economic growth, and inflationary tactics are used by the government to raise prices.

Question

Quizplus · Accepted Answer

Hyperinflation typically involves extremely high and rapid increases in the general price level, making it very difficult for individuals and businesses to plan and make economic decisions. This can lead to a slow-down in economic growth and a loss of confidence in the currency. The pain and uncertainty associated with hyperinflation can also have long-lasting effects on the economy and society as a whole.

When an Economy Experiences Hyperinflation, It Has