ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -According to Quantity Theory: Inflation is caused when the rate of increase in the money supply is faster for example printing more notes than the growth of real output. Because there is more money pursuing the same quantity of commodities, this is the case.

Detailed explanation-2: -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-3: -Hyperinflation – an explanation It refers to a situation where the prices of goods and services rise uncontrollably over a defined period of time. In general, the term is used when the rate of inflation increases at more than 50% a month.

Detailed explanation-4: -Suppressed inflation describes a situation in which, at existing wages and prices, the aggregate demands for current output and labour services exceed the corresponding aggregate supplies.

Detailed explanation-5: -As the printing presses sped up, prices rose faster, until these countries started to suffer from something called “hyperinflation”.