WHAT IS MEANT BY INFLATION?

Question

WHAT IS MEANT BY DEFLATION?

WHAT IS MEANT BY STAGFLATION?

Answer 1

Inflation is the rise in price of goods and services or Consumer Price Index(CPI).Inflation is caused when the organization does not have enough goods to be sold out due to various factors, the organization will increase the price of goods, this causes the inflation rate to go up.

Deflation- reduction in the general level of prices sustained over several months, usually accompanied by declining employment and output.

STAGFLATION-An economic condition of both continuing inflation and stagnant business activity.

Answer 2

inflation- prices going up, income staying same

deflation- prices going down, income staying same

stagflation- price same, income same

(you can always look this stuff up on wikipedia

Answer 3

inflation- a general and progressive increase in prices

DEFLATION-a general decrease in prices

stagflation-

Sluggish economic growth coupled with a high rate of inflation and unemployment.

Answer 4

inflation prices rise

Deflation prices decrease

stagflation is inflation with no wage increases

Answer 5

Inflation means that it takes more dollars today to buy the same thing you bought previously -- not because the item is scarcer or more valuable in absolute terms, but because the cur ency isn't worth as much.  

Answer 6

Inflation in an economic sense is the rate at which the cost of goods increases in relation to the real value of goods.

For example - in 1990 if a mars bar cost 30p and it now costs 50p then that is due to inflation - because the real value is the same.

There is an interesting article below - the Mars Bar is a very good measure of inflation as the real cost has been pretty much the same since they were released.

Answer 7

Inflation means the money (currency) you have in your hand is not worth that much it is promising... means, if you have Rs. 100 in your hand, but the worth (values) of it is less than Rs. 100. The result is always, you have to buy something with more currency for the same value.  

Answer 8

Inflation is a rise in average prices from one year to the next.

Deflation is a fall in average prices from one year to the next.

Stagflation is a rise in average prices from one year to the next, income remains the same.

Answer 9

The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances. opposite of deflation.  

Answer 10

Consider you are buying an apple for 10$. see what will happen after these scenarios

Inflation /ur Income  Deflation /ur Income    Stagflation/ur Income          

   12$  /10$                  8$/10$                      12$/8$

Answer 11

Inflation is the increase in the general level of prices of items.

Deflation is the opposite.(where prices go down)

Stagflation is inflation and stagnation (slow economic growth) at the same time

Which means that theres high increase in level of price but the economy is growing slower than normal

Answer 12

Just basic terms of Economics that we should  all know.....now, i wont go into detail as some dozen of people have posted already.  

Answer 13

INFLATION - TO RISE

DEFLATION - TO FALL OR AIR OUT LIKE A POPPED BDAY BALLOON

STAG- TO STAND STILL

PICK ME  FOR BEST I KEPT IT SIMPLE 4 U!!!

Answer 14

hi,

     Inflation is "increase in price"

and stagflation is "inflation or deflation remains stable for a certain period of time" it means both stags for a while..

think this would help you..

Answer 15

Inflation --->The prices you pay for goods and services rise faster than wages and income so your income and savings buys less and less in the future.

Stagflation--> =there is inflation and little or no job (ie total income) growth.

Both types of economic situations are bad bec population is growing!

BTW, shrinking size of food packages at constant prices is hidden form of inflation. Job losses by relocation of manufacturing and service companies to cheaper labor regions under the "Globalization is Good"  brainwashing slogan from mega-multinational corporations is a hidden form of stagflation!

Prices relative to income is the real parameter! But hey nobody wants us to learn that! Esp the super-rich who make money irregardless of economic price/income trends!

Answer 16

Inflation;_ It means in economic terms that rise in prices compared to a set mark, by which we can come to know how costly the particular item has become compared to the benchmark price.

Deflation and Stagflation :- Dont know, sorry.

Answer 17

inflation: increase in the value of product or service

in other words depreciation of money

deflation: decrease in the value of product or service

in other words increase of money

STAGFLATION or Depression:

its economy slow down, high inflation, greater unemployment