Question

Some problems that economists try to solve are easy as economic problems but hard as political problems. Medical doctors face similar kinds of situations: Preventing most deaths from obesity or lung cancer is easy as a medical problem (eat less, exercise more, don’t smoke), but hard as a self-control problem. With this in mind, how is ending hyperinflation like losing 100 pounds?

A. We lack understanding of the cause of the problem.

B. Both are always good things to do.

C. They are both simple tasks to accomplish.

D. We know the cure but lack the will to pursue it.

Answer 1

The answer is; D). We know the cure but lack the will to pursue it.

Hyperinflation is a term to describe rapid, excessive, and out-of-control general price increases in an economy. While inflation is a measure of the pace of rising prices for goods and services, hyperinflation is rapidly rising inflation, typically measuring more than 50% per month.