Inflation refers to the general rise in prices over time from "summary" of Economics for Beginners by Andy Prentice,Lara Bryan
Inflation is when prices go up. This is not just a one-time thing, but a general increase in prices over time. It's like when you go to the store and notice that the cost of your favorite chocolate bar has gone up from last week. And then you go back the next month and see that it's even more expensive. That's inflation at work. There are different reasons why prices might go up. One of the main causes of inflation is when there is too much money floating around in the economy. When people have more money to spend, they are willing to pay more for things, which causes prices to rise. This is known as demand-pull inflation because it is driven by consumers wanting to buy more goods and services. Another cause of inflation is when there are shortages in the economy. If there is not enough o...
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