When the price of a good in Russia increases from 20 rubles to 20 million rubles in a single year, the nation is experiencing:
A) deflation.
B) falling GDP per capita.
C) hyperinflation.
D) high disinflation.

Question

Quizplus · Accepted Answer

The sudden and extreme increase in the price of goods, as indicated by the increase from 20 rubles to 20 million rubles, is characteristic of hyperinflation. Deflation would indicate a decrease in overall price levels, falling GDP per capita would indicate a decline in economic output on a per-person basis, and high disinflation would indicate a slower rate of inflation, but not necessarily a sudden extreme increase in prices.

When the Price of a Good in Russia Increases from 20