Consider the following statements regarding inflation:
Statement-I: Inflation refers to the rate of increase in prices over a given period.
Statement-II: Inflation results in increasing purchasing power of the population.
Which one of the following is correct in respect of the above statements?
1
Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
2
Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
3
Statement-I is correct; Statement-II is incorrect
4
Statement-I is incorrect; Statement-II is correct