What is Inflation?

    Inflation is the uprise in prices of an economy’s goods, services, and wages. Inflation can be caused by a number of factors, such as supply prices, wage increases, and other factors. Inflation is almost universally a negative thing for the economy and it is very much associated with a recession or depression. Inflation has a negative impact on the economy and results in slowed economic growth and slowed economic output. The economy is something that is a lot like a machine, except that it runs on people’s working hours and the machines that make things like fabrics, food, and technology. Inflation is very hard to deal with and sometimes might not have a cause at all.