Puzzles

March 5, 2013 5:59am CST
Sometimes when my teacher teach us about makro economy theory, we fell confused about inflation. Which is true guys, inflation causes high prices or high prices causes inflation? Please explain with your reason,,thanks,,have a nice day,, :D
1 response
@subhojit10 (7375)
• India
21 Mar 13
I can understand your problem very well and i know it is pretty obvious for many of us to get confused with certain concepts that r explained in the class. as far as my knowledge goes, inflation always causes prices to rise and not the vice versa. with inflation the prices of certain commodities with rise and this is the concept.