Question

Typically, high inflation is a sign of
Responses

a healthy economy because it results from a rise in consumer interest.
a healthy economy because it results from a rise in consumer interest.

a healthy economy because it results from a fall in production costs.
a healthy economy because it results from a fall in production costs.

a struggling economy because it results from a fall in consumer interest.
a struggling economy because it results from a fall in consumer interest.

a struggling economy because wages cannot keep up with the increase in prices.

Answer 1

a healthy economy because it results from a rise in consumer interest.

Explanation: High inflation often reflects demand‑pull inflation—strong consumer spending and aggregate demand pushing prices up as the economy heats up.