Inflation- causes, costs & Benefits

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  • Created by: Lottie
  • Created on: 24-03-12 17:15

INFLATION

CAUSES

  • demand pull- demand increases much more than supply causing prices to increase
  • Cost push- when production costs increases causing the supply curve to shift to the left therefore the prices of goods/ services increases

COSTS

  • loss of international competitveness- exports become expensive & imports cheap= worsen balance of payments
  • Redistribution of income- fixed incomes will cause people…

Comments

Tharhni

Nice Work

Lucy

Its good but you spelled some words wrong (losing, not loosing)

delzz

Good :P

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