INFLATION 💵
What does inflation in economics mean? Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of the currency is falling. When you dive deep into this problem you will face terminologies like GDP (Gross Domestic Product), CPI (Consumer Price Index) etc. Forget the jargons, let's get practical. If you have a closer look at the problem, according to Economics, what is the primary cause of increase in the price of products? 2 things, Demand-Pull and Cost-Push. Demand-Pull occurs when the aggregated demand for goods and services rises more rapidly than an economy's productive capacity. A typical example will be the produce, most agricultural produce has a seasonal yield and during the off-season of the produce it's price will be risen because of the scarcity of its availability. Cost-Push , on the other hand, occurs when prices of production process inputs increase. Consider you're a tomato s...