Inflation
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This document defines inflation as a sharp upward movement in price levels according to R.P Kent, and as too much money chasing too few goods according to W. Acolborn. It also notes that inflation means an increase in prices of common goods due to an increase in money circulation. The document discusses two types of inflation: demand-pull inflation, which occurs when increasing demand for goods and services brings inflation; and cost-push inflation, which occurs when an increase in the cost of production goods is a major factor leading to inflation. The document notes several effects of inflation such as currency depreciation against other countries, declining exports and increasing imports and poverty.
Inflation
- 1. Inflation
- 2. definition R.P KENT says that: inflation is nothing more then a sharp upward moment in the price level. W.ACOULBORN : inflation means too much money cashing too few goods. In my words increase in the prices of common goods due to increase in money circulation.
- 3. Types of inflation Demand Pull inflation Cost push inflation
- 4. Demand pull inflation The increasing demand of goods and services bring demand pull inflation. Demand supply prices inflation
- 5. Effect of inflation Currency value depreciate against other countries Due to excess of Inflation the relevant country Exports decline and imports increased. as result the slandered of life fall due to increase in price. Poverty increase.
- 6. Cost push inflation Increase in cost of production goods is major factor of cost push inflation.it is occur due to increase in cost of factor of production.
- 7. Thanks