Meaning of Inflation:

Inflation describes a persistent and an appreciable increase in the general price level. The inflation rate is measured as a percentage change in a price index, such as the consumer price index (CPI).

• Define inflation
• Explain the two main theories of inflation viz. Demand Pull and Cost Push.
• Identify and explain five causes of inflation.
• Explain five effects of inflation.
• Explain how demand management policies and supply side policies could be used to control inflation.
• Explain the meaning of unemployment.
• Identify and explain types of unemployment.