ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.

Detailed explanation-2: -Deflation, conversely, is the general decline in prices for goods and services, indicated by an inflation rate that falls below zero percent.

Detailed explanation-3: -Which type of inflation occurs when prices are high then drop due to lower demand, and then are restored to a previous high level. Cost-push inflation occurs when cost increases are not offset with greater output that lowers the cost of each unit made.

Detailed explanation-4: -Key Takeaways Deflation is the drop in general price levels in an economy, while disinflation occurs when price inflation slows down temporarily. Deflation, which is harmful to an economy, can be caused by a drop in the money supply, government spending, consumer spending, and corporate investment.