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Answer Posted / aditya s harma,jalandhar
inflation is a rise in the general level of prices of
goods and services in an economy over a period of time.When
the general price level rises, each unit of the functional
currency buys fewer goods and services; consequently,
inflation is a decline in the real value of money—a loss of
purchasing power in the internal medium of exchange which
is also the monetary unit of account in an economy. A chief
measure of general price-level inflation is the general
inflation rate, which is the percentage change in a general
price index (normally the Consumer Price Index) over time.
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