When inflation was high also the recession was high how
these two contradictory things occur at a same time
- 3 Answers
- 6722 Views
- ADP, I also Faced
- E-Mail Answers
Answer Posted / giri
Inflation is caused by two reasons :-
1) Demand Pull Inflation
2) Cost Push Inflation
When cost push inflation occurs then the cost of the
commodoties rised because of the increase in the price of
the raw materials.
Due to this the people of the country has to pay more for
the same commodity than what they were paying. Due to this
they have to decrease the consumption of the other services
like hotels, airlines etc. Which causes service industries
to suffer from the losses because of the low demand of
their services.
Companies layoff the workers from their jobs because of the
less demand of their services and even manufacturing
companies produces less products because of their less
consumption and the result of this lead to recession.
| Is This Answer Correct ? | 4 Yes | 0 No |
Post New Answer View All Answers
What is the short cut to cancel a day book or list of vouchers in Tally ERP 9?
Who are investment bankers?
What is the difference between FII and FDI
What's Selling gold coins,insurance,mutual funds?
Define GDP? What is the current GDP rate in the economy?
Tell us something about yourself in one minute?
What is Base Rate?
What is a listing in BSE?
What are the additional covenants in term loan agreement to protect lenders?
Which software is used in the banking sector?
Name the major stock market indices.
What Are Irredeemable Debentures.?
What is the old name of syndicate bank?
How To Create User Account?
What is a demand draft and overdraft?
