ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The market value of all final goods and services produced in a nation during a period of time, usually a year.
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The increase of general prices over time.
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When people do not have jobs and are actively looking for one.
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None of the above
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Detailed explanation-1: -Definition: Inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on year basis. It effectively measures the change in the prices of a basket of goods and services in a year. In India, inflation is calculated by taking the WPI as base.
Detailed explanation-2: -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-3: -The inflation rate is the percentage change in the price index for a given period compared to that recorded in a previous period. It is usually calculated on a year-on-year or annual basis.
Detailed explanation-4: -However, if one goes by Samuelson-Nordhaus definition of inflation, a rise in the general level of prices is inflation. It means that any rise in the general price level over and above the base-year level is inflation.
Detailed explanation-5: -inflation, in economics, collective increases in the supply of money, in money incomes, or in prices. Inflation is generally thought of as an inordinate rise in the general level of prices. From a theoretical view, at least four basic schemata commonly used in considerations of inflation can be distinguished.