Which of the following would most likely be called a hyperinflation?
A) Price increases averaged 300 percent per year.
B) The inflation rate was 10 percent per year.
C) Real GDP grew at a rate of 12 percent over a year.
D) A stock market index rose by 1,000 points over a year.

Question

Quizplus · Accepted Answer

Hyperinflation refers to an extremely rapid increase in the general price level of goods and services in an economy. Price increases averaged 300 percent per year as stated in option A indicates a severe case of hyperinflation, whereas the other options do not fit the definition of hyperinflation.

Which of the Following Would Most Likely Be Called a Hyperinflation