Assuming that inflation above 100% is hyperinflation, categorize each of the inf
ID: 1211935 • Letter: A
Question
Assuming that inflation above 100% is hyperinflation, categorize each of the inflation rates in the table below as deflation, disinflation, inflation, or hyperinflation as we move from one year to the next.
(%) Description 1900 90 (Click to select)HyperinflationDeflationInflationDisinflation 1901 80 (Click to select)InflationDeflationHyperinflationDisinflation 1902 120 (Click to select)DeflationHyperinflationInflationDisinflation 1903 40 (Click to select)InflationDisinflationHyperinflationDeflation 1904 –2 (Click to select)InflationHyperinflationDisinflationDeflation
Explanation / Answer
Answer:
year
Inflation rate
Description
1900
90
Inflation
(is a general rise in prices)
1901
80
Inflation
( prices continue to rise compared to 1900)
1902
120
Hyper-inflation
( Inflation rate ha exceeded 100%)
1903
40
Disinflation
(Disinflation is commonly used by the Federal Reserve to describe situations of slowing inflation)
1904
-2
Deflation
(deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% )
year
Inflation rate
Description
1900
90
Inflation
(is a general rise in prices)
1901
80
Inflation
( prices continue to rise compared to 1900)
1902
120
Hyper-inflation
( Inflation rate ha exceeded 100%)
1903
40
Disinflation
(Disinflation is commonly used by the Federal Reserve to describe situations of slowing inflation)
1904
-2
Deflation
(deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% )