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When the value of goods increases , because constraint of money to control the purchasing of consumer
INFLATION GENERALLY TO SPEND MONEY TO ANY THING PURCHASES THERE IS 02 KINDS OF INFLATIONS
LOW INFLATION-SPEND LITTLE MONEY BIG PURCHASES
HIGH INFLATION-SPEND MORE MONEY VERY LITTLE PURCHASES
Inflation is the increase in the average price levels of goods and services over time. This usually occurs when prices of certain goods rise. There are2 types of Inflation
1. High Inflation
2. Low Inflation
1) Low inflation is when the prices of product do not rise immediately. It can encourage businesses to expand and it makes it easier for a country to sell its goods abroad.
2) High inflation is when employees real income falls, leading in the demand of higher amount of wages by the workers from the company. Prices of goods produced in the country will be higher and people may switch to foreign goods instead. The living standers are likely to fall.
When too much money purchase too few goods. i.e. decreasing in purchasing power and increase in prices of goods.
a general increase in prices and fall in the purchasing value of money
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