Asked by: Gherasim Barreirosbusiness and finance interest rates
What does inflation mean in history?
Last Updated: 19th June, 2020
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Correspondingly, what is inflation and example?
Definition and Example of Inflation Inflation is an economic term that refers to an environment of generally rising prices of goods and services within a particular economy. For example, prices for many consumer goods are double that of 20 years ago.
Secondly, how is inflation defined? Definition of Inflation. Inflation is a situation of rising prices in the economy. A more exact definition of inflation is a sustained increase in the general price level in an economy. Inflation means an increase in the cost of living as the price of goods and services rise.
People also ask, is high inflation good or bad?
When inflation is too high of course, it is not good for the economy or individuals. Inflation will always reduce the value of money, unless interest rates are higher than inflation. And the higher inflation gets, the less chance there is that savers will see any real return on their money.
What is the main cause of inflation?
Inflation means there is a sustained increase in the price level. The main causes of inflation are either excess aggregate demand (AD) (economic growth too fast) or cost push factors (supply-side factors).