Following are the causes of inflation Increase in the Quantity of Money When the quantity of money in circulation is increased, the aggregate demand for goods and services also expands which onward exceeds the aggregate supply. Due to higher demand and lower supply too much money …
By inflation we mean rising of prices but on the other hand it is also a reduction in the value of money. The reduction in the value of money affects the entire economy. The effects of inflation on economy, individual & business discussed in the following …
What is Business Risk When someone is running the business whether it is small or large scale, entrepreneur must understand business risk. Business risk is a major tool for investors with the help they decide whether to invest or not. Every business face risk but it …
The main causes of business risk are as under: 1. Natural Factors There are certain nature factors like floods, earthquake etc. which can damage the business. For human beings nature is uncontrollable, so any loss due to nature calamities is unavoidable and uncontrollable. 2. Competition When …
What is Stagflation, Define of Stagflation The word stagflation is the combination of two words Stag from stagnation and flation from inflation. In stagflation both the higher level of employment and inflation are attached. It is therefore, also called “Inflationary recession.” Keynesian define stagflation as it …