Increased demand for goods and services

Increased supply of goods and services

Government spending

Changes in interest rates

Demand-pull inflation

Cost-push inflation

Hyperinflation

Deflation

Inflation and interest rates are positively correlated.

Inflation and interest rates are negatively correlated.

Inflation and interest rates are not correlated.

The relationship between inflation and interest rates is complex and depends on various factors.

Consumers have more purchasing power.

Consumers have less purchasing power.

Consumers are unaffected by inflation.

The impact of inflation on consumers depends on their income and spending habits.

Businesses benefit from inflation.

Businesses are harmed by inflation.

Inflation has no impact on businesses.

The impact of inflation on businesses depends on their industry and cost structure.

A sustained increase in the general price level of goods and services.

A sudden and sharp increase in the price of a specific good or service.

A decrease in the general price level of goods and services.

A change in the relative prices of different goods and services.

Increased demand for goods and services

Increased supply of goods and services

Government spending

Changes in interest rates

Consumers have more purchasing power.

Consumers have less purchasing power.

Consumers are unaffected by price escalation.

The impacts of price escalation depend on various factors.

Increase prices to cover rising costs.

Reduce costs to maintain profit margins.

Negotiate better terms with suppliers.

All of the above.

Inflation is a general increase in the price level, while price escalation is a specific increase in the price of a particular good or service.

Inflation is a sustained increase in the price level, while price escalation is a sudden and sharp increase in the price of a particular good or service.

Inflation is caused by an increase in demand, while price escalation is caused by an increase in costs.

Inflation is measured by the Consumer Price Index (CPI), while price escalation is measured by the Producer Price Index (PPI).

The difficulty of predicting future inflation and price escalation rates.

The impact of inflation and price escalation on different sectors of the economy.

The political and social consequences of inflation and price escalation.

All of the above.

Fiscal policy

Monetary policy

Incomes policy

All of the above.

The difficulty of implementing policy tools effectively.

The time lag between implementing policy tools and seeing results.

The potential for unintended consequences.

All of the above.

Monitor inflation and price escalation trends.

Negotiate long-term contracts with suppliers.

Invest in cost-saving technologies.

All of the above.

The interconnectedness of global markets.

The different inflation and price escalation rates in different countries.

The impact of global events on inflation and price escalation.

All of the above.