INFLATION

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Inflation:-It is a sustained increase in the price level of goods and services in an economy over a period of time.The opposite of inflation is deflation (negative inflation rate). Inflation affects economies in various positive and negative ways.

 Disinflation :-A fall in the rate of inflation but not sufficient to bring about deflation.
The opposite of disinflation is reflation (negative disinflation rate)is still rising but at a slower rate, for example of disinflation a drop in the annual inflation rate from 6% to 2%.
Reflation:-it is a monetary policy designed to expand a country's output.Reflation policies can include reducing taxes, changing the money supply and lowering interest rates.
Deflation:-When the overall price level decreases so that inflation rate becomes negative, it is called deflation. It is the opposite of the often-encountered inflation.
   Inflation occurs when the price of goods and services rise, while deflation occurs when those prices decrease. The balance between the two economic conditions, opposites of the same coin.



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