The tendency for inflation to change relatively slowly from year to year in industrial countries is called
A) the inflation gap.
B) inflation expectations.
C) inflation inertia.
D) potential inflation.
E) autonomous inflation.

Question

Quizplus · Accepted Answer

Inflation inertia refers to the tendency for inflation to change relatively slowly from year to year in industrial countries. This can be due to factors such as sticky prices, sluggish wage adjustments, and the persistence of inflation expectations.

The Tendency for Inflation to Change Relatively Slowly from Year