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True & Semi-inflation
True inflation • It takes place after full employment of all factor inputs in an…
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Hyper & Moderate Inflation
Hyper Inflation • The price level goes on rising at a very fast rate. •…
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Cost Push & Open Inflation
Cost Push Inflation • Inflation may originate from supply side also. • Aggregate demand remaining…
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Determinants of demand
There are many factors other than price that can affect the level of quantity demanded.…
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Forms of Inflation
Inflation may be of different forms, such as: Demand Pull Inflation • When in an…
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The Quantity Theory by Keynes
• Keynes reformulated the Quantity Theory of Money. • In his opinion the quantity of…
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Cash Balance Approach
• It states that it is not total money but that portion of cash balance…
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QUANTITY THEORY OF MONEY
Quality theory of Money can be analysed by two different approaches: (1) Fisher’s Theory (2)…
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GRESHAM’S LAW
he Law states that bad money drives good money out of circulation. This is true…