Sustained inflation is
A) the same as hyperinflation.
B) also called stagflation.
C) a constant increase in the price of one product or service in the economy.
D) an increase in the overall price level that continues over a significant period of time.

Question

Quizplus · Accepted Answer

Sustained inflation refers to a situation in which there is a persistent increase in the general price level of goods and services in an economy over a prolonged period of time. This is different from hyperinflation, which is a much more rapid and extreme form of inflation. Stagflation, on the other hand, refers to a situation in which there is both high inflation and stagnant economic growth. Choice C is incorrect as sustained inflation refers to a general increase in prices, not just one particular product or service.

Sustained Inflation Is