What are the causes of inflation?
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A Brief Explanation of Inflation. Inflation is an increase in the price level of goods and services throughout a specific time frame.
- Growing Economy.
- Expansion of the Money Supply.
- Government Regulation.
- Managing the National Debt.
- Exchange-Rate Changes.
- The Consequences of Inflation.
- The Takeaway.
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Answer:
Inflation means there is a sustained increase in the price level. The main causes of inflation are either excess aggregate demand (AD) (economic growth too fast) or cost push factors (supply-side factors).
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