Inflation- causes, costs & Benefits
- Created by: Lottie
- Created on: 24-03-12 17:15
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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…
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