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inflation is a sustained increase in price level over a period of time of all goods/commodities.
there are 3 kinds of inflation, demand-pull inflation, cost push inflation and structural inflation.
demand pull inflation refers to the persistant excess AD near or at full employment. in keynesian's perspective, is due to the increase in the goods sector, for the monetarist, its all about Ms>Md.
Cost push inflation is caused by increase in cost of production. To offset this cost, producers cut back on production, causing AS to shift left and at the same time pass on some of the high cost to consumers.
Both kinds of inflation can occur concurrently, leading to a wage-price spiral.
last of all, structural inflation is caused by improvement in the economy, shifting towards tech/capital based industries. Developing industries will experience a rise in demand, wage, there price level, whereas wages in declining industries are inflexible downwards.
inflation can be cured by contractionary fiscal n monetary policy.
contractionary fiscal policy involves decreasing govt expenditure to lower the AE, and at the same time increasing tax rates to reduce consumption and therefore the AE graph.

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deperate act to memorise everything