what is the actual meaning of inlation ?

Question

increase in general price level
effct on economy.

Answer 1

I have never heard of inlation. It's not in the dictionary.

Answer 2

I think you mean inflation.

A textbook will give you the answer, but it really falls down to balance. Inflation is the rising of the cost of a currency. For example, if you could buy a candy bar for 5 cents, and 10 years later that same candy bar was 10 cents, that is inflation. As time goes on in a larger economy, you have a progression of charges continuing to go up and up. If you make the same amount of money, however, you are getting less for what you have, and you a hurt by inflation. To combat this, the Feds raise and lower the interest rates. The thought is that you can raise the rates to allow money put in savings to gain a better yield, thus allowing you to keep even with the costs of things. People tend to see a raise in rates as a bad thing, and it is for short term buyers. However, if you are saving, it is a great move. It's that balance that the Feds work to decide on when they meet. Too much will cause people to stop buying. Too little will make prices go up (people have more money to spend, so places charge more because they know they will have a buyer).

Answer 3

Inlation ??? sounds strange...
ohhh........ U mean to say "Inflation"...
OK
I think u r at ur elementaruy level...
so u need a very basic definition, ie
"The inflation is an increse in general price level"

Effects on economy ???
Inflation transfers adverse effects on economy and society...some of the most important are increse in :-
1.Unemployment
2.Poverty
3.Crimes etc

Answer 4

You've got it. It's the general trend of prices to increase over time.

Inflation generally is caused by:
1) Increase in supply for that currency.
2) Decrease in demand for that currency.
3) General increase in demand for all goods due to population pressures.

Supply increases either because of printing of money (some of which is necessary to prevent deflation or a liquidity crunch - where credit costs too much to be useful) or due to the natural increase in nominal wealth (as when investors flood the securities markets with extra money - this often precipitates a market crash).

Demand decreases because of lost faith in the currency.

Population pressures increase the cost of land - the most limited resource - and housing first, followed by necessities like food and medical care, then by comestibles.

Answer 5

Its an increase on the price level... it has to be shown through the CPI (Consumer Price Index). Inflation lowers the value of people's wages as it increases the cost of living.

The Reserve Bank (or Central Bank) should raise interest rates to counter the rise in inflation to try and sustain inflation... ultimately it stops people from spending.

Answer 6

It is the percentage change in the price level.

Answer 7

Too much money chasing too few goods and services.