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What is Understanding Inflation: Causes & Effects about?

Inflation is defined as a sustained rise in the general price level due to an increase in demand without a corresponding increase in supply. There are various causes of inflation including demand pull factors like rising government expenditure and money supply, and cost push factors like volatile food production and rising import prices. Inflation negatively impacts consumers by reducing the purchasing power of money over time as the same amount of money can buy less goods and services during periods of hig

Author

UtsavGoel

Language

EN