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what z inflation? asked on 30/7/09
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Answer Posted / bindu
Inflation means sustained increase in general level of
prices, so that the given amount of money buys less and
less. Fixed income people will suffer in case inflation
increases.
Economists identified two types of inflation:
1. Demand pull: Aggregate demand exceeds than aggregate
supply and competition for scarce products pushes up their
price.
2. Cost push: Increase in wages or other costs pushes
prices up.
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