inflation is injurious to GDP growth. true or false. explain.
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Inflation refers to the problem where the price of goods and services arrives in an economy.
Explanation:
- Inflation refers to a problem where there is a significant rise in the prices of goods and services in an economy.
- Due to this, the real income which can be spent on buying goods and services decreases.
- As a result, people are unable to afford even the basic services and products.
- Inflation also affects the overall economic situation of a country.
- Inflation can result in various disruptive movements which act as a hindrance to the process of developmental policies.
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