What is Inflation ?
The rise of the price of goods and services and fall of the value of money is termed as Inflation.
When the supply of money increases without increases of the supply of
goods and services in the economy, then the price level got raised and this is called inflation.
In inflation money looses its purchasing power, and price level raised that means
"Your money won’t buy as much today as you could yesterday".
Imbalance between Supply of money and supply of goods and services causes inflation / deflation in the national economy.
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