BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When the economy is doing well.
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A sustained increase in the general price level of goods and services in an economy over a period of time.
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When Coles and Woolworths increase the price of some goods.
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When you get a high power bill.
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Detailed explanation-1: -Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.
Detailed explanation-2: -Inflation is the general rise in the prices of goods and services in an economy, over a period of time. It reduces the purchasing power of consumers, because each unit of currency can purchase fewer products with an increase in the general price levels.
Detailed explanation-3: -Inflation is an economic situation where the general price level in the economy for all the relevant goods has a constant appreciable rise over a considerable period of time. in other words, it refers to a persistent upward movement in the general price level of all relevant goods and services in the economy.
Detailed explanation-4: -Inflation is the general increase in the price levels of baskets of goods and services in an economy. Q. (I) Deflation is a decrease in the general price level of goods and services. It occurs when the inflation rate falls below 0%. (II) Disinflation is the same phenomenon as deflation.
Detailed explanation-5: -Increase in public spending, hoarding, tax reductions, price rise in international markets are the causes of inflation. These factors lead to rising prices. Also, increasing demands causes higher prices which leads to Inflation.