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inflation is?

inflation is?

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Answer #1

Inflation is defined as the general increase in the price level of the goods and services over a period of time.The same product which costs $10 today will cost $20 few years from now because of inflation.

Inflation increases the cost of living over time and reduces the purchasing power of the money because as inflation rate increases but your income remains same then you will buy far lesser amount of goods with that income in future.

Inflation occurs because of an increase in aggregate demand and an increase in cost of production.

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