5. “ Inflation is when you pay fifteen
dollars for the ten-dollar haircut
you used to get for five dollars
when you had hair ”
6. Inflation means a persistent increase in the level of
consumers prices or a persistent decline in the
purchasing power of money, caused by an increase
in available currency and credit beyond the proportion
of available goods and services.
7.
8.
9. In Economics, Inflation is a rise in the
general level of prices of goods and services
in an economy over a period of time.
19. Comprehensive : All commodities available in
the economy witness price rise
Sporadic Inflation : Only a few commodities
register a rise in price
20. Partial : Before the stage of full employment
Full : After the stage of full employment is
reached
21. Demand Pull : Increase in the aggregate
demand for goods and services
Cost Push : a. an increase in wages
b. an increase in the profit margin
29. Irving fisher’s quantity of money
explains-
“Increase in money supply with
proportionate increase in output
lead to rise in PRICE and fall in
money VALUE”
30. It is unearned income by
public servants
Excess demand lead to inflation
31. Growth in population
Growth in private expenditure
Increase in Export
Money reduction in direct taxes
