INFLATION - CAUSES AND CONSEQUENCES
Inflation What is inflation? Inflation is the persistent rise/Sustained rise in the general price level / average price level of a basket of goods and services in an economy over a period of time usually in one year. Inflation does not mean that the price of all the goods has increased. During inflation the price of some goods may increase, some may decrease and some may remain constant but the overall Average/general price level increases. During inflation when the general price level increases and the purchasing power of money decreases, therefore the value of money decreases. It means during inflation the same money will buy less amount of goods. ...
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