Inflation and Deflation

In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services. 

On the other hand, deflation can be described as a decrease in the general price level of goods and services or currency appreciation with respect to the same goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate).

In other words, inflation is rise in the cost of living which decreases the value of money and assets. This means that you can buy less product and services for same price.

Deflation is the drop in the cost of living which increases the value of your money and assets, which means you can buy more products and services for same price.

You might have guessed what inflation and deflation do to your power of buying. Inflation decreases your power of buying and deflation increases your power of buying.

Inflation just rot your money, and deflation just increases your money.

------------------------------------------------------------------------------------------------------------------------

For any Questions, Queries and any other Problem, Please Contact us at:

E-Mail : godfather3112@gmail.com
You can also Follow us on our Facebook Page and on our Google+ Collection.
You can also Follow our G+ Page, the G+ Badge is at the end of page. 
------------------------------------------------------------------------------------------------------------------------