ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is Inflation? In economics, inflation (or less frequently, price inflation) is a general rise in the price level of an economy over a period of time.

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 consensus view among economists is that sustained inflation occurs when a nation’s money supply growth outpaces economic growth.

Detailed explanation-4: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.

Detailed explanation-5: -Economists distinguish between two types of inflation: Demand-Pull Inflation and Cost-Push Inflation. Both types of inflation cause an increase in the overall price level within an economy.