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How inflation becomes a problem in a business
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[QUOTE="Mastergp, post: 274830, member: 85422"] Inflation can seen as the persistent rise in the general price level of goods and services. Inflation occurs when the volume of purchases is permanently running ahead of production, with too much money in circulation chasing too few goods. And it have some important types Demands pull inflation demand pull inflation occurs when consumers have high purchasing power, leading to increases in aggregate demand without a corresponding increase in supply. In other words, this inflation occurs when demands for goods and services is greater than supply. Cost push inflation: Cost push inflation occurs when increases in cost of production are passed on to con sets in the form of high prices of goods and services are pushed up by rising cost. Hyper inflation: Hyper inflation also occurs when a persistent inflation becomes uncontrollable and the value of money keeps declining rapidly. prices of goods and services rise at fast rate leading to money loosing its value or it ability to buy goods. [/QUOTE]
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