Question

Explain the concept of inflation in your own terms. How have you been impacted by inflation in your lifetime? What did you do to offset the rising costs?

Answer 1

Inflation in simple terms is the general rise of price level of goods and services in a given period of time.

inflation equation is given by the fisher effect equation.

which says that -

Nominal GDP is equal to real GDP + inflation.

yes inflation is faced by so many people in many economies like rise of price of commodities .

Examples are Fruit and Vegetables ,bread ,butter etc .

for this people generally prefer saving and do less expenditure from their income