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Types of inflation (Based on rates (Creeping or small or gradual inflation…
Types of inflation
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Bottleneck inflation
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Such condition is due to supply side accidents, hazards or mismanagement which is also known as structural inflation
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Core inflation
Inflation excluding food, Fuel and energy
Inflationary Gap
The excess of total government spending above the national income (i. e.) fiscal deficit is known as the inflationary gap
Deflationary Gap
The shortfall in total spending of the government over the national income creates deflationary gap in the economy
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