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Question
What is the meaning of inflation?
Solution
A substantial rise in price or rise in price at fast rates is called inflation. Another noteworthy point in this regard is that one time rise in the price level does not mean inflation. It is the persistent rise in the price level which is called inflation. Further, a rise in the price level for a short period of time, say 6 months or a year, is not regarded as inflation. It is only when the price increases continuously over a long period of time that it is treated as inflation.
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