Inflation inertia refers to the idea that inflation:
A) is always present in economies.
B) keeps on going unless something acts to stop it.
C) cannot be reduced unless unemployment is increased.
D) can be generated by either demand-pull or cost-push forces.

Question

Quizplus · Accepted Answer

Inflation inertia suggests that inflation will continue unless there is some force, such as government policy, that acts to stop it.

Inflation Inertia Refers to the Idea That Inflation