Respuesta :
In economies with persistently high inflation, an increase in the money supply will: not affect the real quantity of money, making money neutral in the long run.
The term "high inflation" refers to a rise in prices, which over time results in a loss of purchasing power. The average price increase of a basket of chosen goods and services over time can be used to determine the rate at which buying power is decreasing. A unit of money now effectively has less purchasing power than it had in earlier periods due to the increase in prices, which is frequently stated as a percentage. Deflation, on the other hand, is characterized by a drop in prices and a rise in purchasing power.
- The rate of increase in prices for goods and services is referred to as high inflation.
- Demand-pull high inflation, cost-push inflation, and built-in inflation are three categories that are sometimes used to describe it.
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