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What is Understanding Inflation: Causes & Effects about?

Inflation is defined as a sustained increase in the general price level of goods and services in an economy over time, which decreases the purchasing power of currency. The document discusses the causes of inflation including demand-pull, cost-push, and built-in inflation. It also examines inflation indexes like the consumer price index and impacts such as erosion of purchasing power, effects on income/employment, and an unstable business environment.

Author

Saima Nazir Khan

Language

EN