CBSE Class 11 Economics Inflation Problems and Policies Assignment Set B

CBSE Class 11 Economics Inflation Problems and Policies Assignment Set B . Based on CBSE and NCERT guidelines. The students should read these basic concepts to gain perfection which will help him to get more marks in CBSE examination.


By inflation in ordinary language, we mean a process of rising prices. Inflation 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 inflation rate, the annualized percentage change in a general price index over time.

Main causes of cost-push inflation are :

* Higher wage rate

* Higher profit margin

* Higher taxes

* Fall in the availability of basis inputs.

* Administered higher prices of inputs.

Causes of Inflation

1. Demand factors

* Growth of population

* Rise in employment and income

* Increase in pace of urbanisation.

2. Supply factors

* Irregualr agricultural supply

* Hoarding of essential goods.

* Rise in administered prices.

* Agricultural price policy

* Rising prices of imports

* Inadequate growth of industrial production.


1. Define inflation

2. Define deflation

3. Define stagflation

4. Which demand factors cause inflation?

5. Which supply factors cause inflation?

6. What is demand pull inflation?

7. What is cost push inflation?

8. What is inflation rate?

9. Who controls and monitor monetary policy india?

10. What is fiscal policy?

Please refer to attached file for CBSE Class 11 Economics Inflation Problems and Policies Assignment Set B



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