write a paragraph on inflation in india in 500 words
Answers
Explanation:
Inflation will be clear a major problem in economy if the demand is increases bt supply of goods is constant, because if there is a lot of customer but very few suppliers then supplier can’t do anything, because the income is increase but deliver of the goods is constant, in market place the producer would not be able to control the cost of raw material and labor also. if this is happen it result comes with less profit or in some extreme case no profit ,it should come to out of business, the manufacture would not have an incentive to invest in new equipment and lack of technology. Uncertainty force people to withdraw money from the bank and change it into product with bigger lasting value like gold.the inflation causes lead the country lower economic growth, from the year 1950-1960 the average was at 2.00% inflation, between 1960-1970 the average was 7.2%,in 1970-1980 the average was 8.5%.there are lots of monetary measures like credit control, demonetization of currency, issue of new currency, reduction in unnecessary expenditure,increae in taxes, increase in savings ,surplus budgets, public debt. these are the monetary measures. There ae some fiscal measures like,to increase production,rational wage policy,prie control,rationing.there are so many tyes of economic crises ,in economy there is a inflation affected to Indian economy so when the global food trade systems stop delivering and the meager pay the price,for several years the global trade in tack foods has been heading towards a catastroph