5.3.1.3 - Running Inflation
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
Define running inflation.
💡 Hint: Think about the percentage that characterizes running inflation.
What is one effect of running inflation on consumers?
💡 Hint: What happens to money's value when prices go up rapidly?
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the defining rate for running inflation?
💡 Hint: Remember the specific threshold for this type of inflation.
True or false: Running inflation is beneficial for fixed-income earners.
💡 Hint: Think about fixed incomes' ability to keep up with rising prices.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Assume an economy has a running inflation rate of 10%. If a product cost $100 last year, calculate its expected price this year.
💡 Hint: Use the formula to calculate the new price considering inflation.
Discuss how a 7% running inflation rate would affect different income groups. Which groups would be most affected and why?
💡 Hint: Consider how spending patterns differ across income groups.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.