Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY2 Marks
Question
Define inflation and depression $($deflation$).$
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Answer
Inflation means the supply of money is higher than the demand for money which leads to high prices of goods and services in the economy. Deflation means the supply of money is less than the demand for money and hence the prices of the goods and services fall.
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