Too many people chasing few goods
 

the economic problem can be explained in terms if too many people chasing few goods,explain.what are the main causes of inflation?[B]plz answere me its really a great favour for me[/B]

causes of inflation are written at following thread;

[url]http://www.cssforum.com.pk/central-superior-services-examination/topics-notes/economics/19616-inflation.html[/url]

Main Causes
 

Especially when[COLOR="Purple"][B][SIZE="4"] Aggregate Demand Increase [/SIZE][/B][/COLOR]for that there are few Reason which are as follows

[COLOR="Purple"]][/COLOR][LIST][*]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[/LIST]


[B][SIZE="4"][COLOR="Purple"]if aggregate supply decrease[/COLOR][/SIZE][/B]
[LIST][*]Shortage of factors of production
[*]industrial dispute
[*]natural climate
[*]artificial scarcities
[*]increase in export
[*]lop-sided production
[*]law of diminishing returns
[*]international factor[/LIST]
[B][SIZE="5"]Measure to control [/SIZE][/B]
[LIST][*]Monetary Measure[*]Fiscal measure[*]Other Measure[/LIST]
[B][SIZE="4"][COLOR="Black"]Type [/COLOR][/SIZE][/B]

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

follow this link
[url]http://www.cssforum.com.pk/general/discussion/18834-we-heading-towards-hyperinflation.html[/url]

i hope u will get through from it

Thank you best regards
for further problem u can contact again