Guyzzz em all back wid a new topic out here forcing u all to bang ur head against topics as alwayzzz......forgive me 4 dat guyzzz....but learn things juzz 4 a whilee......! ! ! !
Topic f d day is Inflation as suggested by our very own PG Guyzzzz, Do read it before scrolling down :
Definition of Inflation
According to Crowther,
"Inflation is a state in which the value of money is failing i.e. the prices are rising."
According to Coulbourn,
"Inflation is too much of money chasing too few goods."
Apne shabdon main ek pyaara sa example dunga and dat too in hindi for a change.... assume koi 1 cheez hai Rs.100 ki.... aur ek producer haiii 'A'...everything is okay and market is good....Producer A 10 samaan banaata hai aur becch deta hai 10 customers ko..... now assume dat no. f buyers(population) increase.....let's say 10 ki jagah 20 consumers/buyers aa jaate hain market main.....fir kyaaa hoga..... mere ko samaan chahiye...toh chahiyeee... baaki unnis(19) gaye tel lagaane.....Main kahunga ki producer bhaii...100 main de rahe ho sabkoo.....main 102/103 main le lunga.....Ab producer kisko dega....unn unnis(19) ko joh Rs.100 main khareed rahe hain yaa mujhko joh same cheez ke liye Rs.2/3 jyaada dene ko taiyaar haiiiii.....ofcourse mere ko hi dega uska baapu V... 
Dis s inflation....Supply remained d same and d demand increased(becaz f population in india)....! ! ! ! Price f dat product increased by Rs2/3....ab joh unna dega usko milega product warnaa tel lagaoo....
then another producer B comes and gives d same product at Rs.95 or Rs.105..... If iss at Rs.95 then producer A toh kangaal....kyunki hur koi 95 main kharidega instead f buying it at rs100.... lut gya Producer A....Dis s deflation...or prices getting reduced.....wen dere r lot f producers(n fewer buyers) d supply increases and den dey sell dere product at price f peanuts incurring loss at there production cost......! ! ! ! ! ! ! ! If producer B sells at Rs.105 then concept f competition comes...! ! ! !
Features of Inflation
The characteristics or features of inflation are as follows :-
Inflation involves a process of the persistent rise in prices. It involves rising trend in price level.
1.Inflation is a state of disequilibrium.
2.Inflation is scarcity oriented.
3.Inflation is dynamic in nature.
4.Inflationary price rise is persistent and irreversible.
5.Inflation is caused by excess demand in relation to supply of all types of goods and services.
6.Inflation is a purely monetary phenomenon.
7.Inflation is a post full employment phenomenon.
8.Inflation is a long-term process.
Terms Related to Inflation
The important terms related to inflation are as follows :-
Deflation : Deflation is a condition of falling prices. It is just the opposite of inflation. In deflation, the value of money goes up and prices fall down. Deflation brings a depression phase of business in the economy.
Disinflation : Disinflation refers to lowering of prices through anti-inflationary measures without causing unemployment and reduction in output.
Reflation : Reflation is a situation of rising prices intentionally adopted to ease the depression phase of the economy. In reflation, along with rising prices, the employment, output and income also increase until the economy reaches the stage of full employment.
Stagflation : Paul Samuelson describes Stagflation as the paradox of rising prices with increasing rate of unemployment.
Stagnation : Stagnation in the rate of economic growth which may be a slow or no economic growth at all.
Statflation : The term 'Statflation' was coined by Dr. P.R. Brahmananda to describe the inflationary situation of India. According to Brahmananda, Rising prices in the middle of a recession is known as Statflation.
Post ur queries as comments Guyzzz..... ! ! ! ! !
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Pp
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