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kakasveta [241]
3 years ago
9

Which is the best definition of hyperinflation? a gradual decrease in the price of goods and services

Social Studies
2 answers:
SpyIntel [72]3 years ago
6 0

The best definition of hyperinflation is <u>an exponential increase in the price of goods and services. </u>

Further Explanation:

Hyperinflation is a term that is used to describe excessive, rapid and “out-of-control” price rises in an economy. Whereas inflation determines the pace of increasing prices for “goods and services”, hyperinflation is speedily rising inflation. It can take place in a time of ‘war’ and ‘economic turmoil ‘followed by‘central bank’ printing excessive money.

Hyperinflation is a ‘rare event’ for developed economies; hyperinflation has taken place many times in many countries such as Germany, Hungary, China, Argentina, and Russia. It takes place when prices rise by more than “50% per month” over a particular period of time.  

Hyperinflation results in a ‘number of consequences’ for an economy. Individuals may hoard “goods”, including perishables like food because of increasing prices, which in return creates food supply shortages.  

Learn More:

1. What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

<u>brainly.com/question/5600340 </u>

2. Though the outcomes of the Schenck and New York Times differed, what did these decisions have in common? The government has a heavy burden to prove harm. The government can limit speech that causes harm. The government has unlimited power to limit speech. The government must follow the first amendment.

<u>brainly.com/question/1804110 </u>

Answer Details:

Grade: Middle School

Chapter: Hyperinflation

Subject: Social Studies

Keywords:

hyperinflation, excessive, economy, goods and services, inflation, prices, food supply

nadya68 [22]3 years ago
5 0

The correct answer is: "an exponential increase in the price of goods and services".

Inflation is defined as the gradual increase in the price level of goods and services in a region or country during a specific period of time. Hyperinflaction is the very accelerated version of the same phenomenon, when the increase in prices is spectacular and keeps growing without control. It generates a very quick devaluation of the currency, as its purchasing power decreases at the same rapid pace as the price rise.

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