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Generally, inflation takes place in an economy when demand for goods and services exceeds the supply of output. Therefore, causes of inflation have two sides, the demand side and supply side.
Generally, inflation takes place in an economy when demand for goods and services exceeds the supply of output. Therefore, causes of inflation have two sides, the demand side and supply side.
THERE ARE TWO MAIN CAUSES OF INFLATION.
THERE ARE TWO MAIN CAUSES OF INFLATION.
A. INCREASE IN THE DEMAND FOR GOODS AND SERVICES.
A. INCREASE IN THE DEMAND FOR GOODS AND SERVICES.
B. DECREASE IN THE SUPPLY OF GOODS AND SERVICES
B. DECREASE IN THE SUPPLY OF GOODS AND SERVICES
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