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Question
Inflation means ______.
Options
A state of high prices
A state of general rise in prices
A state of rise in the value of money
None of these
Solution
Inflation means a state of general rise in prices.
Explanation:
- Inflation is the ongoing rise in the overall price level of goods and services in an economy over a specific duration.
- Inflation refers to a loss in money's purchasing power, resulting in the need for a larger amount of money to purchase the same quantity of goods or services as before.
- Inflation involves not only higher costs for individual commodities, but also an overall rise in prices across several sectors.
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With reference to the picture given below answer the questions that follow:
- Define the concept.
- Explain any three types of the concept.
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Assertion (A): Inflation is a continuous rise in the general price level.
Reason (R): Inflation increases standard of living.
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- Creeping inflation is regarded essential for economic growth.
