In macroeconomics, galloping inflation is also commonly known by which term?

Introduction / Context:
Inflation describes a general rise in the price level over time. Economists classify inflation into different types based on its speed and severity, such as creeping, moderate, galloping and hyperinflation. Understanding these categories helps students and professionals interpret economic reports, central bank policies and exam questions on price stability. Galloping inflation is a particularly high and rapid form, and it is closely associated with the concept of hyperinflation.

Given Data / Assumptions:

• Inflation refers to a sustained increase in the general price level of goods and services.
• Different terms are used to describe inflation at low, moderate and very high rates.
• Galloping inflation implies extremely high and often accelerating inflation, usually far above single digit annual rates.
• The question asks for an alternative, commonly used term for this very high inflation.

Concept / Approach:
Creeping or mild inflation refers to low, stable inflation, often considered acceptable or even desirable in a growing economy. Moderate inflation involves somewhat higher but still manageable rates. Galloping inflation describes a situation where prices are rising very rapidly, perhaps double digit or triple digit annually, eroding purchasing power quickly. When inflation becomes extremely high and out of control, it is often referred to as hyperinflation. In many exam contexts, galloping inflation and hyperinflation are used interchangeably to describe severe, runaway price increases that destabilise an economy.

Step-by-Step Solution:
Step 1: Recall the common classifications of inflation: creeping, moderate, galloping and hyperinflation. Step 2: Recognise that galloping inflation represents very high and disruptive price increases, often many times higher than normal inflation targets. Step 3: Understand that hyperinflation is the term used for extreme, often uncontrollable inflation where prices may rise daily or even hourly. Step 4: Note that in many textbooks and exam questions, galloping inflation is described as another name or stage of hyperinflation, both indicating very rapid price rises. Step 5: Match this understanding to the options and select the term hyperinflation as the correct equivalent.

Verification / Alternative check:
Historical examples such as Germany in the early 1920s, Zimbabwe in the late 2000s or other extreme cases show prices rising so fast that people rush to spend money before its value falls further. In such situations, monthly or even daily inflation rates can be enormous. Economists commonly label these episodes as hyperinflation. They are also described as galloping because prices appear to be racing upward, damaging savings, contracts and confidence. This confirms that galloping inflation is closely associated with the term hyperinflation in economic language.

Why Other Options Are Wrong:
Option B, jumping inflation, is not a standard technical term in macroeconomics and is rarely used in formal classification. Option C, moderate inflation, refers to more manageable rates often in single digits or low double digits, not the extremely high rates implied by galloping inflation. Option D, none of the above, is incorrect because there is a widely accepted term, hyperinflation. Option E, creeping inflation, describes very mild and slow price increases. None of these except hyperinflation properly describe the severe, rapid inflation implied by galloping inflation.

Common Pitfalls:
Students sometimes mix up creeping, moderate and galloping inflation, or assume all high inflation is automatically hyperinflation. It is useful to remember that creeping is low and steady, moderate is somewhat higher but still controlled, galloping is very fast and disruptive, and hyperinflation represents the extreme end of the scale. In many exam contexts, galloping inflation and hyperinflation are treated as closely related ideas describing severe upward price spirals. Clearly stating this relationship shows a good conceptual understanding of inflation types.

Final Answer:
Galloping inflation is also commonly known as hyperinflation.