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The Effects Of Inflation

" A pair of inflation indicators released Friday showed that inflation is on the rise", is the article that I chose to review. I found the article on the Wall Street Journal's web page. In it there are different links to current business articles, stock market updates, and current issues in th ....

Middle of Paper
.... capacity to produce. Because resources are fully employed, the business sector cannot respond to this excess demand by expanding output, so the excess demand bids up the prices of the limited real output, causing demand pull inflation." This more or less is called "too much spending chasing too few goods." Demand-pull inflation will continue as long as there is excess total spending versus a Cost-push inflation, which automatically is self-limiting; it will die out by itself. Increased per-unit costs will lead to reduce supply, which me ....

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