Paper I · 6 Indian Economy & Planning · 6.2.3 Inflation and price indices

6.2.3.3 Effects of inflation and related terms: deflation, stagflation, core inflation, base effect and the Phillips curve

Unexpected inflation moves wealth from lenders and fixed-income earners to borrowers, and the Phillips curve describes the short-run trade-off between inflation and unemployment.

  • APPSC Paper I · Paper I
  • Advanced level
  • 5 min read
  • Full course

Key terms

  • effects of inflation
  • debtors
  • bracket creep
  • base effect
  • Phillips curve
  • stagflation
  • deflation
  • Cost Inflation Index
  • menu cost
  • shoe-leather cost

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

Read the full note in the app. It is part of the APPSC Paper I full course in Medha AI. Free in the app: the first chapter of each topic.

Read the full note in the app Indian Economy & Planning questions with answers

All Inflation and price indices notes · APPSC Paper I syllabus · APPSC Paper I Mock 1 with answers · Start free

Medha AI writes its own notes and checks them against the sources listed. Medha AI is an independent preparation service. It is not affiliated with, endorsed by or connected to APPSC, TSPSC, MPSC, UPSC or any other commission or government body.