Inflation
Inflation What is inflation ? In flation is the rate at which the prices of goods and services rise . The main cause of inflation is the money supply . When the money supply grows too quickly , prices go up . What are the effects of inflation. Inflation can have both positive and negative effects. On the positive side, inflation can spur economic growth. On the negative side, inflation can erode the purchasing power of consumers. The effects of inflation : how does it impact consumers and businesses ? In flation is the rate at which prices for goods and services increase . It is measured as the percentage change in a basket of goods and services over time . The effects of inflation can be both positive and negative . Pos itive effects : 1 . In flation can stimulate economic growth . 2 . It can encourage businesses to invest and expand . 3 . It can create jobs . 4 . It can i