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प्रश्न
Explain the impact of inflation on producers in the short run.
संक्षेप में उत्तर
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उत्तर
- During inflation, the producers and businessmen gain in the short period.
- Usually the cost of production does not rise as fast as the price of their products. And so there an artificial margin of profit.
- As against this, they may be adversely affected in the long run. If the price level goes on increasing, the total consumption (demand) of their product would fall. This reduced consumption/demand will ultimately reduce their profit.
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Effects of Inflation
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संबंधित प्रश्न
Answer the following :
What are the Non - economic effects of inflation?
Examine any three adverse or evil effects of inflation on production.
Identity the correct statement from the following:
Purchasing power of money falls when ______.
State running inflation impact on fixed income groups.
State the effect of inflation on creditors.
How does inflation affect the distribution of income?
Discuss the effects of inflation on production.
Which section of society gains due to inflation? Why?
Which section of the society is worst affected during inflation? Why?
