OF inflation, fragile economic polices. One of the most important reasons for inflation is the deficit budgeting. Inflation results when actual economic pressures and anticipation of future developments cause the demand for goods and services to exceed the supply available at existing prices or when available output is restricted by faltering productivity and marketplace constraints. In other words, price inflation is when prices get higher or it takes more money to buy the same item. Inflation refers to a continuous, general increase in the price of goods and services. Retrieved from Layton,. Meaning: Inflation refers to a situation when the there is an increase in the prices of general goods and services resulting in the overall decline in the purchasing value of money. It is calculated by finding a typical basket of goods. Inflation causes decline in value of savings, uncertainty, confusion and can lead to lower investment. The hike in taxes results in greater desire to avoid taxes.
They hoarded the good and later on sold these at high prices. . tags: Economics. The Central Bank and the Securities Exchange Commission maintained regulatory and controlled the financial system. Some are natural factors like unfavorable weather conditions which affect the food production and lead to the shortage of commodities in the market. The rise of prices in Pakistan can also be attribute to the despicable acts of traders. Rise in prices is called inflation. The achievement last year of investment grade sovereign credit ratings and improvements in several global competitiveness indices. Have gone so high that it is beyond the capacity of the poor and the middle-class people to purchase them. So we have to import a huge amount of oil every year.
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