What are the effects of inflation on production?

Effects of inflation on production are:

Inflation may or may not result in higher output.
Below the full employment stage, inflation has a favourable effect on production.
In general, profit is a rising function of the price level.
An inflationary situation gives an incentive to businessmen to raise prices of their products so as to earn higher doses of profit.
Such a favourable effect of inflation will be temporary if wages and production costs rise very rapidly.
Inflationary situation may be associated with the fall in output, particularly if inflation is of the cost- push variety.
There is no strict relationship between prices and output.
An increase in aggregate demand will increase both prices and output, but a supply shock will raise prices and lower output.