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Old Saturday, August 23, 2008
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Faraz_1984 Faraz_1984 is offline
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Join Date: Apr 2008
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Faraz_1984 is infamous around these parts
Default Main Causes

Especially when Aggregate Demand Increase for that there are few Reason which are as follows

]
  • Increase in Money Supply
  • Increase in DPI ( Disposable income)
  • Increase in Public Expenditure
  • Increase in consumer expenditure
  • cheap monetary policy
  • Deficit Financing

  • Black money ( personal income)
  • Expansion of the Private sector
  • Repayment of public Debt
  • increase in Exports



if aggregate supply decrease
  • Shortage of factors of production
  • industrial dispute
  • natural climate
  • artificial scarcities
  • increase in export
  • lop-sided production
  • law of diminishing returns
  • international factor

Measure to control
  • Monetary Measure
  • Fiscal measure
  • Other Measure

Type

* Commodity inflation
* Wage inflation
* Monetary inflation
* Fiscal inflation
* Foreign exchange inflation

follow this link
http://www.cssforum.com.pk/general/d...inflation.html

i hope u will get through from it

Thank you best regards
for further problem u can contact again
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