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Which section of society gains due to inflation? Why? - Economic Applications

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Question

Which section of society gains due to inflation? Why? 

Answer in Brief

Solution

Businessmen (entrepreneurs, traders, producers etc.) tend to gain during inflation. It is because prices of their inventories (stock of goods and raw materials) go up thereby increasing their profits.

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Effects of Inflation
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Chapter 10: Inflation - QUESTION BANK [Page 227]

APPEARS IN

Goyal Brothers Prakashan Economic Application [English] Class 10 ICSE
Chapter 10 Inflation
QUESTION BANK | Q 11. | Page 227
Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 13 Inflation
QUESTION BANK | Q 9. | Page 201
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