What is inflation? How can we measure it? What are the differences between inflation based on
inflation is a term that refers to the increase in the general price level of most services and goods in the economy such as clothing, food, housing, transport, etc. it estimates the average change in prices of a basket of commodities over a period. It is the indicator offal in the purchasing power of the currency of a country. It is measured in percent(%). The percentage describes how quickly prices increase during the period. Supply, demands, and expectations about goods affect the rate of inflation. To control inflation, monetary policy can be implemented. If inflation increases more than 50% in a month then it is referred to as hyperinflation. If inflation occurs with the recession, then it is referred to as stagflation. There are two causes of inflation that are demand-pull and cost-push inflation.
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