Economics · Inflation
Which of the following best describes Structural Inflation?
- 1Inflation that consistently remains below the zero percent level.
- 2Inflation arising from institutional or deep-rooted features of an economy, such as supply rigidities and inadequate infrastructure.✓
- 3Inflation caused by an aggregate increase in wages and raw material costs.
- 4Inflation caused by excessive government spending and high money supply growth.
Correct answer
Inflation arising from institutional or deep-rooted features of an economy, such as supply rigidities and inadequate infrastructure.
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