ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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rise in all prices
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rise in most prices
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rise in some prices
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rise in general prices
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Detailed explanation-1: -Definition: Inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on year basis. It effectively measures the change in the prices of a basket of goods and services in a year.
Detailed explanation-2: -If the money supply grows too big relative to the size of an economy, the unit value of the currency diminishes; in other words, its purchasing power falls and prices rise.
Detailed explanation-3: -Inflation can be defined as the overall general upward price movement of goods and services in an economy. The U.S. Department of Labor’s Bureau of Labor Statistics has various indexes that measure different aspects of inflation.
Detailed explanation-4: -The increase in the general level of prices may be caused by many factors like an increase in the money supply, a decrease in the aggregate level of output, an increase in the effective demand, an increase in income, the rapid growth of population, etc.
Detailed explanation-5: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.