Question

To what extent do you agree or disagree with the statement that inflation is a necessary evil

Answer 1

Answer - Yes , I agree with the statement that inflation is a necessary social evil. This is because , it is true fact that inflation makes the goods and services costly , but this fact cannot be ingnored that inflation motivates the economic growth. Inflation happens mostly due to rise in demand which can take place due to rise in income , cheaper loans etc. This rise in AD creates the inflationary pressure. This pressure leads to the motivation of suppliers to produce more , increase investment and fulfill the demands. This leads to the rise in the level of employment , income and Real GDP of nation. Hence Inflation can be called as a necessary evil because if inflation will not be there , there will be no motivation left for boosting the economy