{"id":9943,"date":"2018-02-14T16:49:05","date_gmt":"2018-02-14T11:19:05","guid":{"rendered":"http:\/\/mycbseguide.com\/blog\/?p=9943"},"modified":"2019-03-18T16:18:14","modified_gmt":"2019-03-18T10:48:14","slug":"inflation-problem-policies-class-11-notes-economics","status":"publish","type":"post","link":"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/","title":{"rendered":"Inflation Problem and Policies Class 12 Notes Economics"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#Inflation_Problem_and_Policies_class_12_Notes_Economics\" >Inflation Problem and Policies class 12 Notes Economics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#CBSE_Revision_Notes_Class_12_Inflation_Problem_and_Policies\" >CBSE Revision Notes Class 12 Inflation Problem and Policies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#Indicators_of_Inflation\" >Indicators of Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#Types_of_Inflation\" >Types of Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#Causes_of_demand_pull_Inflation_are\" >Causes of demand pull Inflation are<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#Main_causes_of_cost-push_inflation_are\" >Main causes of cost-push inflation are<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#Causes_of_inflation\" >Causes of inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#Effect_of_Inflation\" >Effect of Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#Policy_measures_to_control_inflation\" >Policy measures to control inflation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/mycbseguide.com\/blog\/inflation-problem-policies-class-11-notes-economics\/#Revision_Notes_for_Class_12_%E2%80%93_Free_PDF_Download\" >Revision Notes for Class 12 \u2013 Free PDF Download<\/a><\/li><\/ul><\/nav><\/div>\n<p><strong>Inflation Problem and Policies Class 12 Notes Economics<\/strong> in PDF are available for free download in myCBSEguide mobile app. The best app for CBSE students now provides Inflation Problem and Policies class 12 Notes Economics latest chapter wise notes for quick preparation of CBSE exams and school based annual examinations. Class 12 Economics notes on Inflation Problem and Policies class 12 Notes Economics are also available for download in CBSE Guide website.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Inflation_Problem_and_Policies_class_12_Notes_Economics\"><\/span><strong>Inflation Problem and Policies class 12 Notes Economics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Download CBSE class 12th revision notes for Inflation Problem and Policies class 12 Notes Economics in PDF format for free. Download revision notes for Inflation Problem and Policies class 12 Notes Economics and score high in exams. These are the Inflation Problem and Policies class 12 Notes Economics prepared by team of expert teachers. The revision notes help you revise the whole chapter in minutes. Revising notes in exam days is on of the best tips recommended by teachers during exam days.<\/p>\n<p style=\"text-align: center;\"><strong><a class=\"button\" href=\"https:\/\/mycbseguide.com\/downloads\/cbse-class-12-economics\/1327\/cbse-revision-notes\/7\/\">Download Revision Notes as PDF<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"CBSE_Revision_Notes_Class_12_Inflation_Problem_and_Policies\"><\/span><b>CBSE Revision Notes Class 12 Inflation Problem and Policies<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>By <strong>inflation <\/strong>in ordinary language, we mean a process of rising prices. <strong>Inflation<\/strong> is a situation of persistent and appreciable rise in prices, leading to fall in purchasing power of money. A chief measure of price inflation is the <strong>inflation rate<\/strong>. It is the annualised percentage change in a general price index over time.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Indicators_of_Inflation\"><\/span><strong>Indicators of Inflation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>1. Index Numbers of Prices<\/p>\n<ul>\n<li>Wholesale\u00a0Price Index(WPI)<\/li>\n<li>Consumer Price Index(CPI)<\/li>\n<\/ul>\n<p>2. Gross Domestic Product(GDP) Deflator<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Types_of_Inflation\"><\/span><strong>Types of Inflation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><b>Demand-pull Inflation<\/b><\/li>\n<li><b>Cost-push inflation<\/b><\/li>\n<\/ol>\n<p><strong>Demand Pull Inflation:<\/strong> Demand-pull inflation arises when there is an excess of demand for goods over their supply. When there is persistent increase in demand and supply does not increase proportionately then prices tend\u00a0to rise.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Causes_of_demand_pull_Inflation_are\"><\/span><strong>Causes of demand pull Inflation are<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>a. Increase in public expenditure<br \/>\nb. Increase in investment.<br \/>\nc. Increase in money supply<br \/>\nd. Growth in black money<br \/>\ne. Increase in population<br \/>\nf. Erratic Agricultural growth<br \/>\ng. Deficit Financing<br \/>\nh. Credit Expansion<\/p>\n<p><strong>Cost-push inflation:<\/strong> Cost-push inflation occurs when rise in price is due to rise in the cost of production. In this type of inflation, demand factor plays a minor and supply factor plays an important role. Once, this type of inflation sets in one industry, it spreads to all other industries of an economy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Main_causes_of_cost-push_inflation_are\"><\/span><strong>Main causes of cost-push inflation are<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>a. Higher wage rate<br \/>\nb. Higher profit margin<br \/>\nc. Higher taxes<br \/>\nd. Fall in the availability of basic inputs<br \/>\ne. Administered higher prices of inputs.<br \/>\nf. Agriculture price Policy of\u00a0Govt.<br \/>\nh. Increase in the rates of Indirect taxes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Causes_of_inflation\"><\/span><strong>Causes of inflation<br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>1. Demand factors<\/strong><br \/>\na. Growth of population<br \/>\nb. Rise in employment and income<br \/>\nc. Increase in pace of urbanisation.<br \/>\n<strong>2. Supply factors<\/strong><br \/>\na. Irregular agricultural supply<br \/>\nb. Hoarding of essential goods.<br \/>\nc. Rise in administered prices.<br \/>\nd. Agricultural price policy<br \/>\ne. Rising prices of imports<br \/>\nf. Inadequate growth of industrial production.<br \/>\n<strong>3. Monetary and fiscal factors<\/strong><br \/>\na. Rising levels of government expenditure.<br \/>\nb. Deficit financing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Effect_of_Inflation\"><\/span><strong>Effect of Inflation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Micro-on Individual<\/strong><br \/>\na. Real income declines<br \/>\nb. Wealth value declines<br \/>\nc. Income redistribution causes social tensions.<br \/>\n<strong>Macro-On Economy<\/strong><br \/>\na. Hoarding and black marketing.<br \/>\nb. Speculation increases<br \/>\nc. Nominal pay increase<br \/>\nd. Higher tax bracket.<br \/>\ne. Deterioration of quality of goods and standard of living.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Policy_measures_to_control_inflation\"><\/span><strong>Policy measures to control inflation<br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>(a) Monetary measures<\/strong><br \/>\ni. A check on the supply of money<br \/>\nii. Increases in rate of interest<br \/>\niii. Decrease in the supply of credit<br \/>\niv. By Raising cash reserve ratio and statutory liquidity ratio and by Open market operations<br \/>\nv. Increase in Bank Rate<br \/>\nvi. Open market Operation( selling of eligible security by RBI)<br \/>\n<strong>(b) Fiscal Measures<\/strong><br \/>\ni. A check on the public expenditure<br \/>\nii. Increase in taxes<br \/>\niii. Public borrowings<br \/>\n<strong>(c) Physical or non-monetary measures<\/strong><br \/>\ni. Increasing output or increasing imports<br \/>\nii. Controlling money wages<br \/>\niii. Price control and rationing.<br \/>\niv. Check on hoarding.<br \/>\nv. Economic planning<br \/>\nvi. Population planning<br \/>\n<strong>(d) Price Policy<\/strong><br \/>\ni. Price control on essential goods<br \/>\nii. Procurement and support price.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Revision_Notes_for_Class_12_%E2%80%93_Free_PDF_Download\"><\/span>Revision Notes for Class 12 \u2013 Free PDF Download<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>CBSE quick revision note for class-12 Mathematics, Physics, Chemistry, Biology, and other subject are very helpful to revise the whole syllabus during exam days. The revision notes covers all important formulas and concepts given in the chapter. Even if you wish to have an overview of a chapter, quick revision notes are here to do if for you. These notes will certainly save your time during stressful exam days.<\/p>\n<ul>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-physics\/1251\/cbse-revision-notes\/7\/\">Physics<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-chemistry\/1267\/cbse-revision-notes\/7\/\">Chemistry<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-mathematics\/1284\/cbse-revision-notes\/7\/\">Mathematics<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-biology\/1298\/cbse-revision-notes\/7\/\">Biology<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-accountancy\/1315\/cbse-revision-notes\/7\/\">Accountancy<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-economics\/1327\/cbse-revision-notes\/7\/\">Economics<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-business-studies\/1727\/cbse-revision-notes\/7\/\">Business Studies<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-computer-science\/1851\/cbse-revision-notes\/7\/\">Computer Science<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-informatics-practices\/1873\/cbse-revision-notes\/7\/\">Informatics Practices<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-english-core\/1855\/cbse-revision-notes\/7\/\">English Core<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-history\/1869\/cbse-revision-notes\/7\/\">History<\/a><\/li>\n<li><a href=\"http:\/\/mycbseguide.com\/downloads\/cbse-class-12-physical-education\/1877\/cbse-revision-notes\/7\/\">Physical Education<\/a><\/li>\n<\/ul>\n<p>To download sample paper for class 12 Chemistry, Physics, Biology, History, Political Science, Economics, Geography, Computer Science, Home Science, Accountancy, Business Studies and Home Science; do check myCBSEguide app or website. myCBSEguide provides sample papers with solution, test papers for chapter-wise practice, NCERT solutions, NCERT Exemplar solutions, quick revision notes for ready reference, CBSE guess papers and CBSE important question papers. Sample Paper all are made available through <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=in.techchefs.MyCBSEGuide&amp;referrer=utm_source%3Dmycbse_bottom%26utm_medium%3Dtext%26utm_campaign%3Dmycbseads\"><strong>the best app for CBSE students<\/strong><\/a>\u00a0and myCBSEguide website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation Problem and Policies Class 12 Notes Economics in PDF are available for free download in myCBSEguide mobile app. The best app for CBSE students now provides Inflation Problem and Policies class 12 Notes Economics latest chapter wise notes for quick preparation of CBSE exams and school based annual examinations. 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