Expectations of higher future prices cause firms to lower prices today to sell their product before prices rise.
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Q160: Stagflation is an economic condition characterized by
Q161: If firms increase their prices because of
Q162: Other things equal, demand-pull inflation results in
Q163: A demand-side shock, such as a sharp
Q164: Demand-pull inflation is initiated by an increase
Q166: An increase in aggregate demand causes stagflation.
Q167: In a binding situation, a positive cost
Q168: Supply-side inflation is caused by increases in
Q169: A cost shock, such as a natural
Q170: With a cost shock, a small decrease
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