Question

define inflation and deflation . discuss how there terms are formed​

Answer 1

Answer:

Inflation happens when the price of goods and services increases while,deflation takes place when the price of goods and services decrease in the country. Inflation and deflation are the opposite sides of the same coin.

Maintaining the balance between these two economic conditions, that is inflation and deflation is essential as the economy can quickly swing from one condition to the other as a result of these two conditions. the reserve Bank of India keeps an eye on the levels of price changes and controls deflation or inflation by conducting monetary policy, such a setting interest rates in India.