Which of the following is phenomenon that leads to Hyperinflation?

• 1. It is a situation when aggregate demand in an economy outpaces aggregate supply
  2. It is a situation of persistent rise in inflation along with dip in growth and increase in unemployment
  3. It is a situation caused by an increase in prices of inputs like labour, raw material etc
  4. It is a situation when a nation experiences very high and accelerating inflation

Correct Answer: It is a situation when a nation experiences very high and accelerating inflation

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