Inflation Price Level and Deflation

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How much cost to you when you move forward to pay student loan? When you retire what is the saving of your parents? Answer of above questions will depend on happening of price level which will include level of average prices along with money value. When price level is increasing it is called inflation and when it is decreasing it is known as deflation.

Person more interest is in price level along with deflation and inflation because of 2 main reasons. The first reason when person will have to calculate the percentage in annual basis which is due to changes in price level which includes inflation and deflation rate. In second reason when person want to make difference in money value along with variables of economic which includes loan of students along with saving of parents.

We state inflation along with deflations are basic problems along with measuring price level along with rate of inflation. We will get back to the work of finding the difference in real values along with value of money.

 

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