Saturday, 1 July 2017

CBSE Class 12/NTSE - Macroeconomics - Money and Banking - Inflation Related Terms (#cbseNotes)

Inflation Related Terms

CBSE Class 12/NTSE - Macroeconomics - Money and Banking - Inflation Related Terms (#cbseNotes)

Deflation 
Deflation is that state of the economy where the value of money is rising or the prices are falling.


Hyperinflation
Extremely Rapid and out of control inflammation inflation is said to be hyperinflation.


Stagflation 
A condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices on inflation.




Disinflation 
Slowing in the rate of inflation. Disinflation is when the inflation rate has reduced marginally over the short term.


Reflation 
It is the act of stimulating the economy by increasing the money supply or by reducing taxes. It is the opposite of disinflation.


Recession 
It is a slowdown in economic activities may last for some quarters thereby completely hampering the growth of an economy.