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Question
Distinguish between running inflation and hyper inflation.
Distinguish Between
Solution
| Running Inflation | Hyper Inflation | ||
| (i) | When there is a rapid increase in prices in a very short period, it is called running or galloping inflation. | (i) | It refers to a situation when prices rise at an unexpected rate. There is an escalation of price rise. |
| (ii) | Such an inflation has an adverse affect on the middle and poor classes. | (ii) | Such an inflation results into utter confusion in the economy. It completely wiped away fixed income groups and poor classes of society. |
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