We all aware of market situations across the world. You might coming across various terms like inflation as well. you might be wonder what kind of evil it is, what is inflation?
well Inflation is an increase in the price of a goods and services with regards to economy as a whole. where as deflation is downward movement of an average level of prices. Inflation is too many money chasing few goods. Inflation and deflation is also caused due to changing the amount of money in system.If any government decide to print lot of money, then they are purchasing power increases that may cause increase in demand of good and then availability of goods in the market reduce.
Thus we understand Inflation is caused by the combination of the below four factors:
1. The supply of money goes up.
2. Demand for money goes down.
3. The supply of other goods goes down.
4. Demand for other goods goes up.
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