According to the "acceleration hypothesis," the inflation rate will accelerate when actual output is held

Name: According to the "acceleration hypothesis," the inflation rate will accelerate when actual output is held
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According to the acceleration hypothesis, when actual output is above potential output, there will be upward pressure on prices due to increased demand for goods and services. This will lead to an acceleration in inflation as firms increase prices to maintain profit margins.

According to the "Acceleration Hypothesis," the Inflation Rate Will Accelerate