What Is Creeping Inflation

question 54

Multiple Choice

What is creeping inflation?

• A) Inflation that continues to rise but slowly.
• B) Inflation that suddenly appears without warning.
• C) Price levels that suddenly rise without warning.
• D) Price levels that continue to rise but slowly.
• E) Inflation that suddenly appears and creates panic.

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Definitions:

Productivity

The measure of the efficiency of a person, machine, system, etc., in converting inputs into useful outputs.

Output/Input

A measure of efficiency that compares the quantity or quality of outputs (results, products) generated by a system to the inputs (resources, time) used.

Productivity

The measure of how efficiently resources are used to produce outputs.

Inputs

Resources used in the production process to generate outputs, including raw materials, labor, and capital.