ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Inflation: It is a sustained rise in the general price level in an economy. Stagflation: A situation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high. Deflation: It is a persistent fall in the general price level of goods and services.

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: -In economics, price level refers to the buying power of money or inflation. In other words, economists describe the state of the economy by looking at how much people can buy with the same dollar of currency. The most common price level index is the consumer price index (CPI).

Detailed explanation-5: -Inflation is the general increase in the price levels of baskets of goods and services in an economy. Q. (I) Deflation is a decrease in the general price level of goods and services. It occurs when the inflation rate falls below 0%. (II) Disinflation is the same phenomenon as deflation.