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Defining the term ‘Inflation’
Inflation occurs when there is an increase in the value of money relative to value of goods or services. This finally leads to increase of price level of goods and services as well. In case there is an increase of price of any goods, the buying ability of human gets reduced over time. Inflation leads to decrease of purchasing power of money.
Inflation homework help will also make you aware that it is measured by Consumer Price Index and Product Price Index. Keynes has explained that inflation is usually referred to rise in price level once full employment level is achieved.
Types of inflation
Inflation can be of different types:
Reason why inflation occurs
The cause of inflation can be categorized under two important heads. Such as:
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