Question

24. a) Define inflation b). What efforts have been made by the government of your country to combat inflation? 25. a) Define National income. b) What are the uses of National Income estimate in your country, 26. Explain four reasons for having a development plan in your country. 27. Discuss five contributions made by agriculture to the industrial development in your country​

Answer 1

Inflation refers to the decline of purchasing power.

Step-by-step explanation:

Inflation refers to the decline of purchasing power of a given currency over time or in other words, Inflation refers to an environment in which rising prices of goods and services occur within the country. Governments can employ a contractionary monetary policy to fight inflation. In this policy, the government reducing the money supply within an economy through decreased bond prices and increased interest rates. National income estimates provide us detailed data related to production, savings, investment, capital formation and various other economic activities of a country in a particular year. Development planning is important because it helps in the of reduction of poverty through the creation of employment opportunities and social opportunities like education, health, etc.