What is inflamation.know about economy in flation.

 Friends today iam asking about inflation.inflation.know about economy inflation.

Inflation is that state in which the prices of goods and services rise on the one hand and value of money falls on the other.when money circulation exceeds  the product of  and

services,the of inflation takes place in the economy.

Types of in flation.

Pull demand inflation: inflation created and suspend by excessof aggregate demand for good s and services over the aggregate supply.in other words, demand pull inflation takes place when increase in product ion lags behind the increase in money supply.

Cost push: inflanation which is created and sustained by increase in cost production which is independent of the state of demand.trade unions can bargain for highest wages and and hence contribute to inflanation.

Stagflation: a condition of slow economy grouth and relatively high unemployment  .

Usually ,when un employment accompanied by rising price or international or inflanation and a decline in gross distance gross domestic product.

This happened in the United States during the 1970 when world oil prices rose dramatically,increasing the costs of goods and contribute to an increase in un employment.the filling stagnation increased the in flation effects on the economy.

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