Inflation
Inflation
Inflation is a well known process of the price level increase for various goods and services that leads to a purchasing power decrease. Although, only a price level rise throughout the whole economy can be identified as inflation, due to the fact that prices on particular product go up and down every day. There are several reasons for an inflation to occur, and one of those is called demand-pull inflation. This type of inflation usually occurs when there is an inflationary gap, and when the level of aggregate demand increases at a faster rate than the underlying level of supply, which ...