Answer to Question #249002 in Macroeconomics for BENSON

Question

inflation is a global phenomenon that is associated with high price causes decline in the value for money. it exists when the amount of money in the country is in excess of the physical volume of goods and services. Explain the reasons for this monetary phenomenon.

Answer 1

Inflation is the rate at which the prices of goods in a specific economy rises. Inflation occurs when prices rise as manufacturing expenses, such as raw materials and labour, rise. Inflation can result from a spike in demand for products and services, as customers are prepared to pay more for them.