what is inflation and deflation?

Question

I 've found their like rigid dictionary meanings but i'm having a hard time understand, so could any of you describe those two terms in an easy way?

Answer 1

you have your answer , now i will explain you practically:

lets say that you have 1 dollar .
with one dollar you will buy a 2 lolli pops.
when the inflation grows you will buy only 1 lolli pop with that dollar.
and when deflation is present you will buy 3 lolli pops with one dollar.

Answer 2

Inflation really simply means things cost most. You use to be able to buy a milkshake for 25 cents in the '50s now its like $5...

Deflation just is the opposite, when some items first come out and are brand new they cost so much. When the PS2 came out it was like $400 now you can get it at Target for $120.

Answer 3

Inflation is too much money chasing after too few goods and services. For example, if the government prints twice as much money as the amount in circulation now, the price of everything will go up dramatically. (That's what happened in Germany during WW2)

Deflation is just the opposite. Not much money in circulation compared to the huge amounts of goods and services available.(Low demand compared to the supply that's available)

Answer 4

Inflation= A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.

Deflation= A persistent decrease in the level of consumer prices or a persistent increase in the purchasing power of money because of a reduction in available currency and credit.
The erosion of soil by the wind.

Answer 5

inflate = grow
deflate= shrink

Answer 6

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