Inflation is defined as an increase in the price of Goods and services that projects the Indian economy. An increase in inflation figures occurs when there is an increase prices of Goods and services. Inflation happens when there are less supply and more demand, this will result in increase in the price of Goods, since there is more buyers and less supply of the goods.
Inflation can be recognized as a combination of 4 factors :
• The Supply of money goes up
• The Supply of Goods goes down
• Demand for money goes down
• Demand for goods goes up
Our Indian government gets involved in it to control the inflation by adjusting the level of money in our economical system. The most noticeable way to increase the money flow in the system is to print more currency, then the rupees will become more relative to goods.
skip to main |
skip to sidebar
