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 Energy crises
 Increase in population
 Decrease in supply
 Marketing and new technology
 Customs and traditions
 Backward mean of production
7
A phenomenon in which the general price
levels rise (inflation) due to increases in
the cost of wages and raw materials.
8
9
 Monopoly
 Natural disasters
› Shortage of resources
 Component costs
› increase in the prices of raw material (natural
resources).
 Rising labor costs
› creating labor shortages
 Higher indirect taxes imposed by the
government
› a rise in the duty on alcohol, cigarettes and
petrol/diesel.
10
 A fall in the exchange rate
› this can cause cost push inflation because it
normally leads to an increase in the prices of
imported products.
 Loose Govt. control
 Surplus Employment.
 Imports
11
12
Amna Abdul

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Inflation deflation

  • 1. 1
  • 2. 2
  • 3. 3
  • 5. 5
  • 6. 6
  • 7.  Energy crises  Increase in population  Decrease in supply  Marketing and new technology  Customs and traditions  Backward mean of production 7
  • 8. A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials. 8
  • 9. 9
  • 10.  Monopoly  Natural disasters › Shortage of resources  Component costs › increase in the prices of raw material (natural resources).  Rising labor costs › creating labor shortages  Higher indirect taxes imposed by the government › a rise in the duty on alcohol, cigarettes and petrol/diesel. 10
  • 11.  A fall in the exchange rate › this can cause cost push inflation because it normally leads to an increase in the prices of imported products.  Loose Govt. control  Surplus Employment.  Imports 11