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Question : In which situation do wages and prices chase each other at a very quick speed?

Option 1: Disinflation

Option 2: Reflation

Option 3: Stagflation

Option 4: Hyperinflation


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Hyperinflation


Solution : The correct answer is Hyperinflation.

Wages and prices tend to chase each other at a very quick speed during periods of hyperinflation. It occurs when prices in an economy rise very quickly, often by hundreds or even thousands of per cent per year. This makes the country's money lose its value fast, causing everyday things to become extremely expensive.

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