Increase In Price Level of Goods or Services Over a Period of Time Period Is Called Inflation, Is an Economic Problem and Had a Major Monetary Phenomena Lemon Things Increasing Price Level Is Inflation but One Can Understand It Technically and Properly Only in Terms of Economics
Definitions
Dr AP Learners Definition
Situation Of Excess Demand Over Supply of Good Is Called Inflation
Dr J M Kings Definition
The Real Situation of Inflation Is Created with The Increase in Money Income Beyond the Level of Full Employment of Factors of Production.
Inflation Exist in Money Income Increases Faster Than Earning Activity
The Constant and Study Increase in Price Leads to Decrease in The Purchasing Power of Money Cans Believe That Inflation Is the Rise in Price Levels Even After Full Employment
Rise Of Inflation
During Inflation There Occurs Constant Increase in Price Levels Price Rice Takes Place in All Sector of Economy Value of Money Purchasing Power of Money Keeps on Decreasing the Rise in Price Level After Full Employment Is Also Inflation
If Government Has Control The Prices Either By Surprising Prices Through Some Rules Or By Providing Subsidies And Therefore Not Allowing The Prices To Rise Then It Is Called Surprised Inflation The Inflation Exist Because If The Government Removes Its Control Or Subsidies Then The Price Would Arise If In An Economy There Is An Increasing The Price Of Few Goods Or Services For A Temporary Period Then It Is Not Considered Inflation When The Resources Present In An Economy A Lying On Use Then Rise In Prices Of Goods Or Services Will Be Unable To The Utilising This Resources In Some Manner This Will Be The Reduce Production Cost
Causes Of Inflation
Increase In Price Level of Goods and Services Over a Period of Time Is Called Inflation the Two Major Aspects Their Affect the Price of Goods and Services Are Demand and Supply Based on This to Aspects We Can Say That Inflation Is Affected by Two Major Factors Namely and Increase in Production Cost
1 Increased in Demand
If The Demand of Product Rises Its Price Rises Similarly When the Demand Increases and The Supply Is Lesser Than the Demand Even the Price Rises Economics If Inflation Takes Place Due to Increase in Demand Compared to Supply Then Such Inflation Is Called Demand Pull Inflation the Major Reason for Increase in Demand Are Following Are Discussed Below
2 Increase in Supply of Money
Monetary Consider Inflation as A Purely Monetary Binomina According to Them If the Quantity of Money Increase in An Economy, Then Income of People Rises When Income Rises Affordability of People Increases and Their Demand More Goods and Services
According To Makil Too Much Money Chasing Too Few Goods Causes Inflation in Other Words Increase Demand Demanding More Goods More Money Demanding More Goods Who Supply Is Pretty Less
3 Increase in Supply of Money
The Government of Developing Countries Like India Is Involved in Economic Development of The Country in Order to Achieve Economic Development It Invoice Huge Money Through Various Projects Related to Employment Full Filling Basically Requirements Raising Infrastructure Inferential Infrastructure the Money Put in This Projects Increases the Supply of Money in Economy
4 Overpopulation
In India Every Year the Population Increases By 2% The Increasing Population Demands More Goods and Services Price Rice Takes Place When the Supply Is Not Able to Match Up with The Rising Population Alternatively If There Is No Rise in Population It Is Teddy but The Purchasing Power of People Increases Event Then It Leads to Price Rise
5 Other Reasons
Several Other Factors Can Affect the Inflation Some Factors May Look Minor Factor and My Also Affect for A Short Term but Still Such Factors Can Shoot the Price Levels for Example in Case of Industries That Are Dependent on Foreign Import Increase in Import Taxes or Accidental Shortage of Sometimes Can Also Lead to Price Rise
Conclusion
We Can Conclude That the Increase in Price Levels After Full Unemployment Is Considered Inflation Such an Inflation Processes Restriction in Economic Development.
| Causes Of Inflation |
| Increased in Demand |
| Increase in Supply of Money |
| Increase in Supply of Money |
| Overpopulation |
| Other causes |