Q.6. Write short notes on the following :
1) Inflation
2) Depression
This question is subject economics
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Inflation and depression are two types of economic problems.
Explanation:
- Inflation refers to the uncontrolled increase in the price of goods and services in an economy.
- Inflation increases the value of money as more money is required to buy the product.
- On the other hand, depression refers to the problem of economic slowdown.
- An Economic slowdown is mainly characterized by the reducing value of money.
- A lot of currency has to be spent on buying products.
- Both the problems of depression as well as inflation can be solved by the reserve bank of India by controlling the money supply in the economy.
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