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That is, prices of the vast majority of goods and services on sale to consumers just keep on rising and rising. Prices change over time so inflation is always given per period of time - per month or per year.
Inflation is referred to as either Demand-pull Inflation or Cost Push Inflation or Imported Inflation
Demand-pull Inflation
Inflation caused by an increase in aggregate demand is called demand-pull inflation. Aggregate demand in an economy will rise if spending by governments, consumers and/or firms increases. Consumers will be able to spend more of their incomes if they reduce saving or if a government cuts income taxes...
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