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Inflation Video Lecture | Indian Economy for UPSC CSE
FAQs on Inflation Video Lecture - Indian Economy for UPSC CSE
| 1. What is inflation? |  |
Ans. Inflation is the rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power.
| 2. How is inflation measured? | |
Ans. Inflation is typically measured by the Consumer Price Index (CPI), which tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
| 3. What causes inflation? | |
Ans. Inflation can be caused by a variety of factors, including excess demand, cost-push inflation (increases in production costs), or monetary expansion (printing more money).
| 4. How does inflation impact the economy? | |
Ans. Inflation can have both positive and negative effects on the economy. It can erode purchasing power, increase the cost of living, and lead to uncertainty. However, moderate inflation can also stimulate economic growth and encourage spending.
| 5. How can inflation be controlled? | |
Ans. Central banks can control inflation by adjusting interest rates, managing the money supply, and implementing other monetary policy tools. Governments can also use fiscal policy measures such as taxation and government spending to help control inflation.
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