
Long questions with answers for this topic
Inflation is a sustained rise in the general price level over time, reducing the purchasing power of money.
Deflation is a sustained fall in the general price level over time.
Demand-pull inflation occurs when aggregate demand rises faster than aggregate supply and pushes prices up.
Cost-push inflation occurs when production costs rise and aggregate supply shifts left, raising prices.
Hyperinflation is extremely rapid and very high inflation.
One effect is fall in purchasing power/real income (any one).
Causes of demand-pull inflation include:
(Any three causes can be written.)
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