Question

Inflation increases the standard of living of the people, Write True or false against the statement.

Answer 1

"Standard of living depends on two factors. It is either dependent on the income or on the expense and it is the rising prices or the expense factor which causes inflation in an economy.

Standard of living is directly affected by inflation. When inflation occurs, the purchasing power of people reduces.

With reduced spending power but consistent expenses, the standard of living invariably falls.

"