• Inflation is a situation of rising prices in the economy.
  • Inflation is a sustained increase in the general price level in an economy. Inflation means an increase in the cost of living as the price of goods and services rise.
  • The rate of inflation measures the annual percentage change in the general price level.
Lucy  (@lucy_d) - Profile Photo

@lucy_d

💰

Money

Definition of Inflation - Economics Help

economicshelp.org

  • Inflation leads to a decline in the value of money. “Inflation means that your money won’t buy as much today as you could yesterday.”
  • If the prices of goods rise. the same amount of money will purchase a smaller quantity of goods.
  • Cost-push inflation – when a rise in prices is caused by a rise in the cost of production, such as higher oil prices
  • Demand-pull inflation – when a rise in prices is caused by rising aggregate demand and firms pushing up prices due to the shortage of goods

Hyperinflation is generally considered to occur when inflation is greater than 1000%. 

With hyperinflation, money loses its value so rapidly that nobody wants to use it as a medium of exchange.

Deepstash helps you become inspired, wiser and productive, through bite-sized ideas from the best articles, books and videos out there.

GET THE APP:

SIMILAR ARTICLES

📈

Economics

7 IDEAS

❤️ Brainstash Inc.