Can you help me? I have to make a text of 4 paragraphs of 6 lines each paragraph on the importance of inflation in the application of daily life.
Pleaseeeeeeeeeeee help meee
Answers
Answer:
Inflation is also called currency expansion. Normally, currency circulation refers to the issuance of notes in excess of the requirement by the government or bank, which causes the value of the unit of currency to fall and the normal price level rises. In this way, the amount of money increases in the event of currency expansion, while the quantity of goods and services is less than that. This increases the general price level | This is called inflation.
Explanation:
Inflation means when the normal price level in an economy rises continuously and the value of the currency decreases. It is an economical concept based on mathematical estimation that calculates the spread of currency in the market and the increase or decrease in the prices of goods. For example: If the amount of goods used for one hundred rupees in 190, if you had to spend two hundred rupees to buy it in 2000, then inflation would be 100 percent.
If the price in the economy rises for some time and then decreases and then increases again, we will not call it inflation. In inflation, the normal price level should rise continuously. Inflation has a bad effect on people with a certain income group because their income is fixed and their purchasing power decreases when prices rise thus inflation in a developing economy has a very severe effect.
Inflation is probably the most popular of all economical terms. But defining it is a difficult task. Different scholars have given different definitions of this:
It is born when too much money is supplied for very few goods.
It is born even when the demand is more than the supply of goods or services.
Inflation also arises due to supply deficiencies, obstruction and structural imbalances.
In general it would mean that it is the rise of the price level in a given period at a constant rate without increasing, which increases the possibility of further growth in the future.
Measure of inflation in India wholesale price index