‘Present Economic Inflation will Affect Entrepreneurs'

‘Present Economic Inflation will Affect Entrepreneurs'

Expert Solution

Inflation refers to the rise in prices of most goods and services of daily or common use such as food clothing housing recreation transport consumer staples etc. Inflation measures the average price change in a basket of commodities and services over time. Inflation is indicated of the the decrease in in the purchasing power of a unit of a country's currency. This could ultimately lead to a declaration of economic growth.

Present economic inflation causes

- High demand and low production or supply of multiple commodities create a demand supply gap which lead to hike in prices.
- with people having more money they also tend to spend more which causes increased demand
- spurt in production price of certain commodities also cause inflation as the price of the final product increase.

Raising interest rate create challenge for businesses and owners. Also interest rate impact Wall Street and also new entrepreneurs and various businesses.

Rahul Sunny answered 7 months ago

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