News reports from zimbabwe indicate that a small pack of locally produced coffee beans costs approximately 1 billion zimbabwean dollars, an amount that would have bought 60 new cars less than ten years ago in the same country. it can be surmised that zimbabwe is experiencing extremely high levels of which has spiraled out of control in the past ten years.

The answer is inflation

Explanation:

Inflation can be defined as a continuous upward movement in the general price level of goods and services. It is a condition in which supply persistently fails to keep pace with expansion of demand. Inflation can be classified into demand pull inflation, cost push inflation,creeping inflation, Galloping inflation, and hyper inflation respectively.

Demand pull inflation is when consumers have more purchasing power to buy goods and services, this result in a sharp rise in price of goods and services. Cost push inflation is when cost of production rise due to rise in all other cost associated with production, these is later passed to the consumers inform of high prices for the goods and services.

Moreover, creeping inflation is a steady but moderately normal rise in the general price level. While galloping inflation is a faster increase in the prices of goods and services which reduces the value of money as a medium of exchange. Hyper inflation on the other hand, is when price level rises at a very rapid rate which is caused by economic expansion of the supply of money.

However, inflation can be controlled by using monetary policies instrument such as open market operation, Bank rate, discount rate, supervised by the central bank.it can also be controlled by using fiscal policies instrument such as government tax and expenditure supervised by the ministry of finance.

answer; calendar;

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