Hyperinflation refers to a(n)
A) increase in both price level and output.
B) very rapid increase in the overall price level.
C) very rapid decrease in the overall price level.
D) decrease in unemployment which is accompanied by a rapid increase in wages.

Question

Quizplus · Accepted Answer

Hyperinflation refers to a very rapid increase in the overall price level. This usually occurs when there is a significant increase in the money supply relative to the availability of goods and services. As a result, the value of money decreases rapidly, causing prices to rise quickly. This can lead to a vicious cycle where prices continue to rise, causing further devaluation of money, and so on.

Hyperinflation Refers to A(n)