Impact of inflation on the economy from "summary" of Oswaal NCERT One For All for UPSC & State PSC's Indian Economy Classes-9 to 12 (Old & New NCERT Edition) (For 2023 Exam) by Oswaal Editorial Board
Inflation is a phenomenon that affects the economy in various ways. It refers to the continuous rise in the general price level of goods and services in an economy over a period of time. When inflation occurs, the purchasing power of money decreases, leading to a decrease in the real value of money. This has a significant impact on the economy as a whole. One of the key impacts of inflation on the economy is that it reduces the real income of individuals. As prices rise, consumers have to spend more money to purchase the same goods and services, which means that their purchasing power decreases. This can lead to a decrease in consumer spending, which in turn can have a negative impact on businesses and the overall economy. Inflati...
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