Q.The annual inflation rate of a country over four consecutive years was recorded as: Year 1 — 2%, Year 2 — 6%, Year 3 — 45%, Year 4 — 250%. Classify the type of inflation, by rate of price rise, in each year.

Inflation held back by government controls and laws is suppressed inflation — option (c).

Inflation can be classified in several ways. On the basis of government intervention:

• Open inflation — prices are allowed to rise freely with market forces, with no control. …

The definition — inflation occurs when monetary income rises faster than real income — is attributed to Robertson, option (d).

Inflation is a sustained rise in the general price level accompanied by a fall in the value of money. The wording quoted, linking inflation to monetary income growing faster than real income (real output), is the definition credited to the economist Robertson in the GSEB Cl …

The correct option is (A) Monetary — inflation is basically a monetary phenomenon.

Inflation means a continuous and appreciable rise in the general price level, which reduces the purchasing power of money. Economists describe it as a monetary phenomenon because it arises largely when the quantity of money in circulation grows faster than the output of goods and services, so "too much money chases too few goods." While inflation has …

Inflation is a continuous and appreciable rise in the general price level, which lowers the value of money.

Inflation is a situation in which the general price level of goods and services rises continuously and appreciably over a period of time. As prices rise, the same amount of money buys fewer goods, so the purchasing power of money falls. It is usually caused either by excess demand (demand-pull) or by rising costs of production (cost-push). A mild, controlled rise in prices may accompa …