COM 110 Chapter Notes -Excise, Economic Planning

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20 Dec 2021
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Inflation is the upward movement of price rise of goods and services. Nowadays, controlling inflation is biggest challenge for the indian government. Here in this article, i focused on the causes, effects and control measures of inflation. It is the responsibility of the government to control it. Inflation is an increase of average prices of goods and services. Inflation is a state in which prices are rising and value of money decreases. It results in a decline of the purchasing power. Most of the developed countries use the consumer price index (cpi) to calculate inflation rate whereas india uses the wholesale price index (wpi) to calculate the same. Causes of inflation: unfavourable agricultural production: indian agriculture is largely dependent on monsoon. In case of drought or famine the agricultural production is adversely affected. But huge deficit financing leads to inflation: population and black money: rapid growth of population causes inflation.

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