Answer to Question #262930 in Management for MAREYE

Question

Describe Inflation and how it is measured? Ascertain the Fiscal and Monetary policies that are generally adopted to curb inflation.

Answer 1

Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices. Typically, prices rise over time, but can also fall during deflation. Inflation is measured using the consumer price index and Personal Consumption Expenditures price index.