Contest:How to Control Inflation

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Good day steemians how are you all doing today I hope you are all fine and having a wonderful day, me too I'm fine and healthy as well and without wasting much time I will be taking part in a contest organize by @mainuna which is titled "How to Control Inflation".

Express your views on how to reduce inflation

Inflation being an unbearable economic system that causes increased in the price of goods and services in a national setting is always very bad for the citizens

And some of the various ways to help reduce inflation in a country are;

• The government should set for the nation a targeting monetary policy that is aimed at shaping and changing the interest rate in other to control inflation

• The government should set up an inflation bugget that will only aim at reducing and controlling the national economic system.

Explain how product inflation occurs

Product Inflation is seen as an economic system whereby the total cost of production which includes the costs of the price of raw materials as well as the overall wages paid to workers increases and thus making it end product which is the goods to be expensive

When the cost of production increases the manufacturer must certainly increase the price of it's goods so as to be able to cover his expenses and then see his or her gain in the process.

What is the reason why inflation is higher in the village than in the city?

The main reasons why inflation is high in the village than it is in cities is due to the fact that most manufacturers only focuses on distributing their goods to populated areas which are the cities for the purpose of making effective sales

Meanwhile the little Commodities that is being produced in the village is also being moved to the city so as to make fast sales for a more rapid interest thereby making the little available goods in circulation in the village to be very high.

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Explain what role you think the country's government should play in reducing inflation.

The only role that the government should play is in other to fight inflation the government shout really focused on production since inflation deals with the high cost of goods and services

Therefore that simply means that for a particular goods to increase in price means that the demand out weighs the goods in circulation so if the goods is sufficient as a result of increase in production it will definitely lower down its price.

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