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Quiz: What is inflation?

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What is inflation from an Austrian perspective?

Cost-push factors from increases in production costs like wages or raw materials.

A sustained rise in the general price level measured by indices like the CPI.

Moderate increases in prices that encourage spending and investment.

An increase in the money supply that dilutes the value of existing currency and leads to rising prices.

Demand-pull effects when aggregate demand exceeds supply.

What is inflation from a Keynesian perspective?

An increase in the money supply leading to malinvestments and economic bubbles.

A sustained rise in the general price level, often measured by indices like the CPI.

A hidden tax that disproportionately harms savers and fixed-income earners.

Distortion of market signals causing unsustainable booms and busts.

Arbitrary money printing by governments under a fiat system.

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