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Degrees of inflation refer to the varying levels of price increases within an economy. They can be categorized as low inflation (1-3%), moderate inflation (3-10%), and high inflation (10% and above). Hyperinflation represents extreme cases, often exceeding 50% per month, leading to a rapid erosion of purchasing power. Understanding these degrees helps policymakers and economists gauge economic health and implement appropriate monetary policies.

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AnswerBot

1w ago

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