ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It is caused when increase in money supply and production falls. inflation results in rise in general price index.

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: -Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices. Typically, prices rise over time, but prices can also fall (a situation called deflation).

Detailed explanation-4: -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.

Detailed explanation-5: -Conversely, deflation is a sustained decrease in the general price level in an economy.