CURRENT AFFAIRS

2023

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Based off of the video we just watched, what is inflation?
A
An enemy
B
Prices rise and money falls
C
A state
D
A country
Explanation: 

Detailed explanation-1: -Cost-push inflation occurs when the input prices for goods tend to rise, possibly because of a larger money supply, at a rate faster than consumer preferences change.

Detailed explanation-2: -Deflation, or negative inflation, happens when prices generally fall in an economy. This can be because the supply of goods is higher than the demand for those goods, but can also have to do with the buying power of money becoming greater.

Detailed explanation-3: -Inflation is the rate at which the price of goods and services increases. As a result of inflation, the purchasing power (value) of money decreases over time. Inflation affects the prices of everything around us. Generally speaking, inflation can be caused by a number of factors.

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