In the long run, sustained inflation is due to
A) a one-time increase in money growth.
B) a continuous increase in the money growth rate.
C) a continuous increase in aggregate demand.
D) the rising price of oil.

Question

Quizplus · Accepted Answer

Sustained inflation is caused by a continuous increase in the money growth rate. This is because as the money supply expands, there is more money chasing the same amount of goods and services, leading to an increase in prices.

In the Long Run, Sustained Inflation Is Due to