Question

(3) State the causes of inflation.​

Answer 1

Summary of Main causes of inflation

Demand-pull inflation – aggregate demand growing faster than aggregate supply (growth too rapid)

Cost-push inflation – For example, higher oil prices feeding through into higher costs.

Devaluation – increasing cost of imported goods, and also the boost to domestic demand.

Answer 2

Answer:

a natural consequence of the use of money instead of trade goods