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Essay inflation in easy words

“Too much money in circulation causes the money to lose value”-this is the true meaning of inflation. Inflation also occurs when there is too much money in circulation and the consumer's purchasing power increases. - Every macroeconomic policy aims at keeping the output growth rate at a hh and sustainable level, and the inflation rate at a stable, desirable level.

Essay inflation in easy words

Essay inflation in easy words

It occurs when the demand for goods and services is hh and cannot be met by the supply. Only when demand and supply are balanced will there be no inflation.

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  • Such decisions give rise to the important question: what is the most suitable inflation target.


    Essay inflation in easy words

    Essay inflation in easy words

    Essay inflation in easy words

    The following are the main causes of inflation: Basiy, inflation represents a situation wher­eby the pressure of aggregate demand for goods and services exceeds the available supply of output (both being counted at the prices ruling at the beginning of a period). Unemployment or joblessness as defined by ILO “ International Labour Organization”, occurs when people are without jobs and they have actively sought work within the past four weeks.

    Essay inflation in easy words

    Inflation refers to a continuous, general increase in the price of goods and services. Inflation at very fast rate is Hyper-Inflation, medium is Strato-Inflation and low lever is Creeping inflation. HOW TO WRITE ANNUAL EVALUATION Compounding this natural problem are other man-made problems like hoarding which contribute to the escalation of prices.


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