UPSC Exam > UPSC Videos > Indian Economy for UPSC CSE > Measures of Inflation: Price & Inflation
Measures of Inflation: Price & Inflation Video Lecture | Indian Economy for UPSC CSE
|
139 videos|315 docs|136 tests
|
FAQs on Measures of Inflation: Price & Inflation Video Lecture - Indian Economy for UPSC CSE
| 1. What is inflation? |  |
Inflation refers to the sustained increase in the general price level of goods and services in an economy over a period of time. It is typically measured as an annual percentage change and is indicative of the decrease in purchasing power of a currency.
| 2. How is inflation measured? | |
Inflation is measured using various indices, such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). These indices track the changes in the prices of a basket of goods and services over time. By comparing the current prices with a base year, the inflation rate can be calculated.
| 3. What causes inflation? | |
Inflation can be caused by various factors, including demand-pull inflation, cost-push inflation, and built-in inflation. Demand-pull inflation occurs when aggregate demand exceeds the available supply, leading to an increase in prices. Cost-push inflation, on the other hand, happens when businesses face higher production costs, such as wages or raw materials, and pass them on to consumers. Built-in inflation is a result of past inflation expectations influencing current wage or price negotiations.
| 4. What are the effects of inflation on the economy? | |
Inflation can have both positive and negative effects on an economy. Some of the negative effects include eroding the purchasing power of consumers, reducing real wages, and distorting resource allocation. However, moderate inflation can also stimulate economic growth by encouraging spending and investment. Central banks often aim to maintain a low and stable inflation rate to balance these effects.
| 5. How does inflation impact interest rates? | |
Inflation and interest rates are closely related. Generally, higher inflation leads to higher interest rates. This is because lenders require higher interest rates to compensate for the expected loss in purchasing power of the money they lend. Conversely, lower inflation rates allow for lower interest rates, as lenders do not need to account for as much inflation risk. Central banks often adjust interest rates in response to changes in inflation to maintain price stability.
Related Exams
About this Video
|
1.1K Views |
|
4.96/5 Rating |
|
Nov 04, 2024 Last updated |
Video Description: Measures of Inflation: Price & Inflation for UPSC 2024 is part of Indian Economy for UPSC CSE preparation.
The notes and questions for Measures of Inflation: Price & Inflation have been prepared according to the UPSC exam syllabus.
Information about Measures of Inflation: Price & Inflation covers all important topics for UPSC 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Measures of Inflation: Price & Inflation.
Introduction of Measures of Inflation: Price & Inflation in English is available as part of our Indian Economy for UPSC CSE for UPSC & Measures of Inflation: Price & Inflation in
Hindi for Indian Economy for UPSC CSE course. Download more important topics related with notes, lectures and mock test series for
UPSC Exam by signing up for free.
Description
Video Lecture & Questions for Measures of Inflation: Price & Inflation Video Lecture | Indian Economy for UPSC CSE - UPSC full syllabus preparation | Free video for UPSC exam to prepare for Indian Economy for UPSC CSE.
Information about Measures of Inflation: Price & Inflation
Here you can find the meaning of Measures of Inflation: Price & Inflation defined & explained in the simplest way possible.
Besides explaining types of Measures of Inflation: Price & Inflation theory, EduRev gives you an ample number of questions to practice Measures of Inflation: Price & Inflation tests,
examples and also practice UPSC tests.
|
139 videos|315 docs|136 tests
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Previous Year Questions with Solutions
,Semester Notes
,Viva Questions
,Measures of Inflation: Price & Inflation Video Lecture | Indian Economy for UPSC CSE
,shortcuts and tricks
,MCQs
,Measures of Inflation: Price & Inflation Video Lecture | Indian Economy for UPSC CSE
,Important questions
,video lectures
,Measures of Inflation: Price & Inflation Video Lecture | Indian Economy for UPSC CSE
,Extra Questions
,past year papers
,practice quizzes
,study material
,Exam
,Objective type Questions
,Summary
,ppt
,Sample Paper
,mock tests for examination
,Free
;
Study Measures of Inflation: Price & Inflation on the App
Students of UPSC can study Measures of Inflation: Price & Inflation alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Measures of Inflation: Price & Inflation,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Measures of Inflation: Price & Inflation is prepared as per the latest UPSC syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup