Power Of Inflation And Deflation In Nigerian Economy
Nigeria had faced a lot of Inflation and Deflation in her history as a result of many reasons.
Firstly, Inflation is a sustained increase in the general price level of goods and services in the economy over a period of time, which is normally caused when aggregate demand exceeds aggregate supply of goods and services. This is because the income of workers increased from what it used to be, to a favorable amount, making them demand more. Suppliers will use the advantage to increase prices of those commodities.
Coming towards Deflation which is a decrease in the general price level of goods and services. It is caused when prices fall along with reduction in output and Employment. This is sometimes a method purposely drafted by the government in order to quench or counter inflation.
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