Causes of Inflation

Following are the factors which cause an increase in the size of demand: 

1. Increase in Public Expenditure: 

An increase in public expenditure, consequent upon the outbreak of war or development planning, invariably, causes an increase in the demand for goods and services in the economy. In fact, this is an important cause giving rise to the emergence of excess demand in the country.

Note: This is published for the internal use (of St. Philomena's College students) only and hence requires verification. 
Share this article :

Post a Comment

Fathimath Sama
Copyright © 2012. Oscar Education - All Rights Reserved