what is the reason of price rise ?
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Public expenditure increases: Spending by the Government is an important part of total spending in any modern economy. It is the total spending which determines the total demand. Thus, Government expenditure is an important determinant of aggregate demand. Government expenditure has shown an upward trend in less developed countries. At the beginning of the planning period in India, the amount of Government spending has increased by leaps and bounds. This has created an inflationary situation in the economy.
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ᴀɴꜱᴡᴇʀ:-
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- ʀᴀᴘɪᴅ ɢʀᴏᴡᴛʜ ᴏꜰ ᴘᴏᴘᴜʟᴀᴛɪᴏɴ
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- ʜɪɢʜ ᴘʀɪᴄᴇᴅ ɪᴍᴘᴏʀᴛꜱ
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