ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Economic and financial
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Financial and psychological
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Economic and social
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Financial and social
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Detailed explanation-1: -The effects are: 1. Effects on Distribution of Income and Wealth 2. Effects on Production 3. Effects on Income and Employment 4.
Detailed explanation-2: -Effects of Inflation The value of currency unit decreases which impacts the cost of living in the country. When the rate of inflation is high, the cost of living also increases, which leads to a deceleration in economic growth.
Detailed explanation-3: -Inflation reduces the purchasing power of the money. Inflation reduces unemployment. The price of goods and services become more expensive.
Detailed explanation-4: -In an inflationary environment, unevenly rising prices inevitably reduce the purchasing power of some consumers, and this erosion of real income is the single biggest cost of inflation. Inflation can also distort purchasing power over time for recipients and payers of fixed interest rates.
Detailed explanation-5: -demand-pull, cost-push, and. inflation expectations.