Explanation:

Economic growth is the real growth after discounting the inflation. Economic growth is generally seen with some amount of inflation. Inflation means that people are spending in the economy and there is more money than goods and services which induces companies to produce more to increase profits.Inflation is a condition, when cost of services coupled with goods rise and the entire economy seems to go haywire. Inflation has never done good to the economy. However, whenever there is expected inflation, governments around the world take appropriate steps to minimize the ill effects of inflation to a certain extent. Inflation and economic growth are parallel lines and can never meet. Inflation reduces the value of money and makes it difficult for the common people.