picking this topic, but just lets go, it would be nice to discuss this topic
with others peoples.
I will start this topic by the definition
So, what is inflation?
Wikipedia says that inflation is a rise in the general level of prices of goods and services in an economy over a period of time.
This is means that during a period of time,
the price for goods and services go higher than before. For example if you buy
a cup cake about $ 1 in 2002 and than
ten years later that cup cake become $ 2 , that’s means during this ten year
there is inflation for about 100%. (in reality inflation could be calculate in some formulas,
but the common one is by using Consumer Price Index, if you want to know how
to calculate inflation just find it in Google, so let’s get move)
cause inflation? What drive price goes higher?
That is a huge question, inflation could be
triggered by so many factors, it could be the money supply, could be increasing
in demand of goods and services, no
supply of goods and services and some others factor.
I will talk about the demand first, as we
know that if supply for a g…